According to a report in CFO Daily News, the average fine resulting from a DOL audit has risen fourfold in just four years, and now tops $600,000. In addition, 88 people including corporate officers and providers were criminally indicted last year. Three out of four DOL audits resulted in a fine, penalty or reimbursement. The most common errors included:
• excluding certain types of compensation like bonuses, overtime and vacation pay
• incorrect asset valuation
• prohibited transactions like conflicts of interest and misuse of plan assets
And if you think that efforts to reduce the federal deficit will provide any relief, think again — the DOL is planning on hiring 1,000 new enforcement officers.
