The IRS Advisory Committee (“ACT”) on Tax Exempt and Governmental Entities has released a survey designed to assess compliance issues faced by governmental plans subject to Section 401(a) of the Internal Revenue Code (the “Code”). This survey is part of its project to identify cost effective ideas for increasing governmental plans’ operational and document compliance with the Code's requirements. Governmental employers should take note of the IRS’ increased focus on governmental plans.
ACT is conducting a survey as an initial step of its project. The survey asks plan sponsors and retirement plan practitioners general questions about the types of plans it sponsors or services and for the top three qualification failures commonly experienced in operating governmental plans. The survey also provides its respondents with the opportunity to make specific recommendations that would assist them in increasing operational and document compliance. The survey can be completed at: http://benefitslink.com/cgi/srv/gov/act.cgi.