Annual Audit Federal law requires that all plans with more than 100 participants be audited by an independent auditor. It is also common to refer to a DOL or IRS examination of a plan as a plan audit. Annuity A contract providing retirement income at regular intervals. See also Qualified Joint and Survivor Annuity. The percentage of pay that is deferred when an employee is enrolled in a plan through its automatic enrollment feature.
Participants can generally choose to defer an amount other than the default percentage.
The practice of enrolling all eligible employees in a plan and beginning participant deferrals without requiring the employees to submit a request to participate. Plan design specifies how these automatic deferrals will be invested. Employees who do not want to make deferrals to the plan must actively file a request to be excluded from the plan. Participants can generally change the amount of pay that is deferred and how it is invested. Beneficiary A person, persons or trust designated to receive the plan benefits of a participant in the event of the participant s death.