The Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) has the authority to conduct audits on benefit plans that are governed by the Employee Retirement Income Security Act (ERISA). DOL audits often focus on violations of ERISA’s fiduciary obligations and reporting and disclosure requirements.

The DOL may also investigate whether an employee benefit plan complies with ERISA’s protections for plan participants, such as the special enrollment rules or mental health parity requirements. Recently, the DOL has been using its investigative authority to enforce compliance with the Affordable Care Act (ACA).

Penalties for noncompliance and other errors found during an audit can be steep. For example, during the 2013 fiscal year, more than 70 percent of audits resulted in monetary fines or other corrective action. There are several factors that increase or indicate your likelihood of being audited, including the common triggers listed below.

• Participant complaints. If any of your plans’ participants complain to the DOL about potential ERISA violations, your plan will likely be subjected to an audit. For example, according to a DOL audit summary, 775 new investigations in 2013 resulted from participant complaints.
• Incomplete or inconsistent information. The DOL is more likely to investigate a plan that has incomplete answers on the plan’s Form 5500, or if information you report is inconsistent from year to year.
• Major case enforcement. EBSA is focusing on major cases in order to best protect areas that have the greatest impact on plan assets and participants’ benefits.
• Employee contributions initiative. EBSA is focusing on delinquent employee contributions in order to help protect employee contributions to their 401(k), health care and other plans.

Regardless of why you are selected for an audit, you need to be prepared. On July 15, 2015 at 10am industry experts will provide a review of NEEBCo’s DOL Audit Guide for Employee Benefit Plans. This Guide is designed to provide you with an overview of why certain health plans are selected for audit, what you can do to prepare for an audit, and how to reduce your risk of being audited. It includes:

Suggestions on how to prepare for a DOL audit;

• Tips for responding to a DOL audit letter;
• A list of documents that DOL investigators commonly request during an audit; and
• A list of available resources and sample documents to help you prepare for an audit.

To attend, send an email to events@neebco.com by with your name, business affiliation and the names of any additional attendees.