At MBAF, we have developed a specialized and diversified ERISA employee benefit practice by working closely with businesses from various sectors developing, devising and executing strate­gies to provide defined benefit and defined contribution pension plans to their employees.

Our professionals are well versed in working with defined benefit and defined contribution pension plans having handled these since 1974.   
 
We have developed through the years industry knowl­edge of defined benefit and defined contribution pension plans by gaining an in-depth understanding of each organization and its employees. We are experienced in all the specific reporting required by ERISA, DOL and the Generally Accepted Accounting Principles (GAAP).  

MBAF is a member of the AICPA Employee Benefit Plan Audit Quality Center and participates in the AICPA Employee Benefit Plans Committee and its Audit & Accounting Guide. Our senior partner for the employee benefit practice was a member of the AICPA Employee Benefit Plans Committee (1990-1991).
 
Our defined benefit and defined contribution pension plans ser­vices include:
 

    Financial Statement Reporting 

    • Determination of pension determination of pen­sion expense under Financial Accounting Standards Board (FASB) Statement No. 87 and preparation of footnote dis­closure under FASB Statement No. 132.


      Government Filings 

      • Preparation of annual IRS Form 5500 and PBGC filings.


        Compliance Testing 

        •  Confirmation of nondiscrimination and coverage tests under IRC sections 401(a)(4) and 410(b).

        Key Audit Issues

        Investments

        • The nature of the investments are dramatically different and unique.
        • Specific process flow issues:
        Ownership
        Initiating, evaluating and approving transactions
        Accounting for investments
        Custodial responsibility
        Safekeeping
        Investment complexities
        Valuation issues
        Advisor and custodial agreements
        Fee issues


        Benefit Payments

        • The unique element is the recurring nature of the payments.
        • Specific process flow issues:
        How earnings history credits are compiled and linked
        Tracking changes in earnings history
        The calculation itself         (Who does it?, Who reviews?, Who approves it?)
        Payment options. Was the correct benefit given?
        Conversion to a beneficiary
        Preventing benefit redirection
        Stopping benefit payments

         
        Employer Contributions

        • The major process considerations are completeness and pre­venting fraud.
        • Specific process flow issues:
        Plan document requirements
        Employer payroll
        Timing of contributions
        Receivables and allowances for uncollectibles
        Actuarial considerations         

         
        Census Data

        • The accuracy of the census data is not often known until the participant retires.
        • Specific process flow issues:
        Applicability of plan documents
        Demographic data
        Payroll data
        Benefit data
        Actuarial considerations         

          
        Administrative Expenses

        • Specific process flow issues:
        Settlor expenses
        Professional fees
        Related party transactions
        Allocation issues
        Administrative service contract
        Professional trustees
        Expense approval
        Separation of duties         

          
        Actuarial Valuation

        • The involvement of an actuary in a defined benefit plan.
        • Specific process flow issues:
        Assessing the credentials of the valuation actuary
        Assessing the experience of the valuation actuary
        Understanding the methods used
        Assessing the reasonableness of the assumptions
        Understanding actuarial procedures and estimates
        Communicating with the valuation actuary