Employee Benefit Plan Acronyms and Terminology Glossary

An SEC annual filing used by certain employee benefit plans that offer employer securities and are subject to SEC reporting requirements.

An ERISA provision allowing a plan administrator to instruct the auditor not to perform auditing procedures on certain investment information prepared and certified by a qualified institution.

An ERISA plan audit in which qualifying certified investment information is not subjected to auditing procedures, while the auditor performs procedures on the remaining financial statement information.

The section of the Internal Revenue Code establishing qualification requirements for certain employer-sponsored retirement plans.

A defined contribution retirement arrangement that generally allows employees to make elective contributions from their compensation.

A tax-advantaged retirement plan generally available to employees of public schools, certain tax-exempt organizations, and certain ministers.

A tax-advantaged deferred compensation plan generally available to employees of state and local governments and certain tax-exempt organizations.

A deferred compensation arrangement generally used by tax-exempt and governmental employers that does not meet the requirements of an eligible 457(b) plan.

Federal health care legislation establishing requirements affecting employer-sponsored health coverage, including coverage and reporting provisions.

A nondiscrimination test generally used to determine whether matching and certain after-tax employee contributions disproportionately benefit highly compensated employees.

A nondiscrimination test comparing elective deferral rates of highly compensated employees with those of non-highly compensated employees.

A national professional organization for CPAs that develops auditing standards, guidance, resources, and education, including specialized EBP audit guidance.

The FASB's authoritative source of U.S. GAAP for nongovernmental entities.

A professional organization providing education and credentials for professionals working with retirement plans.

A document issued by the FASB to communicate changes to the Accounting Standards Codification.

Controls that a service organization assumes will be implemented by a subservice organization when those controls are necessary to achieve applicable control objectives or criteria.

A professional credential focused on health care reform and employer health benefit requirements.

A pooled investment vehicle maintained by a bank or trust company that combines assets from eligible plans for investment purposes.

Federal law that generally allows eligible employees and family members to temporarily continue employer-sponsored health coverage after certain qualifying events.

A licensed accounting professional who has satisfied applicable education, examination, experience, and licensing requirements.

Ongoing professional education used by CPAs and other professionals to maintain and develop technical knowledge and satisfy applicable licensing requirements.

Controls that a service organization assumes its customers will implement for the service organization's controls to achieve stated control objectives or criteria.

A financial institution or other entity responsible for safeguarding plan assets and performing specified asset-servicing functions.

A retirement plan that generally promises participants a specified retirement benefit based on a formula established by the plan.

A retirement plan in which contributions are allocated to individual participant accounts, with the ultimate benefit generally based on contributions and investment performance.

A DOL program allowing eligible plan administrators to correct late Form 5500 filings and generally pay reduced penalties.

The federal agency responsible for administering and enforcing many of ERISA's requirements for private-sector employee benefit plans.

A plan established to provide employees with retirement, health, welfare, or other benefits.

A technical resource providing specialized consulting, quality management, financial reporting, compliance support, and training related to employee benefit plans.

The division of the DOL primarily responsible for administering and enforcing ERISA's fiduciary, reporting, disclosure, and related requirements.

An IRS correction system that allows plan sponsors to correct certain retirement plan qualification and operational failures.

The primary federal law establishing standards and protections for many private-sector retirement and health and welfare benefit plans.

A qualified retirement plan designed to invest primarily in stock of the sponsoring employer.

The independent organization that establishes U.S. GAAP for nongovernmental entities.

An investment contract meeting specific accounting criteria that permits it to generally be reported at contract value in defined contribution plan financial statements.

A person or entity with discretionary authority or responsibility over plan management, administration, or assets, or who provides investment advice for a fee, and who is subject to specific duties under ERISA.

An annual filing that provides federal agencies with financial and other information about employee benefit plans subject to the filing requirements.

Amounts generally arising when participants terminate employment before becoming fully vested in employer contributions, which may be used only as permitted by the plan document and applicable law.

An employer-sponsored arrangement generally allowing employees to use pre-tax dollars to pay eligible health care or dependent-care expenses.

The accounting principles and standards used to prepare financial statements in the United States.

Professional standards governing how independent financial statement audits are planned, performed, and reported.

A contract, typically issued by an insurance company, providing specified interest or other crediting terms and repayment provisions.

An employee who meets IRS compensation or ownership criteria and is classified separately for certain retirement plan nondiscrimination tests.

An employer-funded arrangement that reimburses employees for qualifying medical expenses and, depending on the arrangement, insurance premiums.

A tax-advantaged account available to eligible individuals enrolled in qualifying high-deductible health plans to pay qualified medical expenses.

A broad category of employee benefit plans providing benefits such as medical, dental, disability, life insurance, or other welfare benefits.

The independent accountant engaged to audit an employee benefit plan when an audit is required under ERISA.

Federal tax law containing many of the qualification, contribution, distribution, and other tax rules applicable to employee benefit plans.

The federal agency responsible for administering federal tax laws, including tax qualification and other requirements applicable to retirement and benefit plans.

Participant contributions or loan repayments that are not transmitted to a plan within the timeframe required by applicable DOL rules.

The former term commonly used for an ERISA audit involving certified investment information. Current auditing standards use ERISA Section 103(a)(3)(C) audit.

A legal business structure that generally provides its owners with limited liability protection.

An employee benefit plan maintained by two or more employers rather than a single employer, subject to applicable qualification and ERISA requirements.

A graduate-level academic degree focused on taxation and tax law.

The value of an investment fund's assets less its liabilities, generally expressed on a per-share or per-unit basis.

An employee who does not meet the definition of an HCE and whose contributions or benefits are often compared with those of HCEs for nondiscrimination testing.

A person or entity with a specified relationship to an ERISA plan, such as a fiduciary, service provider, employer, certain owners, or certain relatives, for purposes of ERISA's prohibited transaction rules.

A federal agency that insures benefits under certain private-sector defined benefit pension plans.

A corporate structure commonly used by licensed professionals and governed by applicable state law.

The organization that establishes auditing and related professional practice standards for audits under its jurisdiction, including certain Form 11-K audits.

A type of multiple employer retirement plan that allows unrelated employers to participate in a single plan administered by a pooled plan provider.

The person or entity designated by the plan document, or otherwise determined under ERISA, as responsible for administering the plan and fulfilling specified reporting and disclosure responsibilities.

The employer, employee organization, association, or other entity that establishes or maintains an employee benefit plan.

Certain transactions between an ERISA plan and a party in interest that are prohibited unless a statutory or administrative exemption applies.

An insurance-company investment arrangement that pools assets from participating plans in a separate account for investment purposes.

An investment option that may provide fiduciary protection when participant contributions are automatically invested because the participant did not make an investment election, provided applicable requirements are satisfied.

A domestic relations order meeting specific legal requirements that directs a retirement plan to pay some or all of a participant's benefits to an alternate payee.

An ASPPA professional credential demonstrating specialized knowledge of 401(k) plans and related retirement plan requirements.

An employer matching contribution satisfying specific requirements that may be used for certain nondiscrimination testing or correction purposes.

An employer contribution satisfying specific requirements that may be used to help satisfy certain nondiscrimination testing or correction requirements.

A service provider that maintains participant-level plan records, including account balances, contributions, distributions, investment activity, and other plan information.

An investment company meeting specific tax requirements; many traditional mutual funds are structured as RICs.

The minimum amount generally required to be distributed from certain retirement accounts or plans once applicable statutory requirements are met.

An employee retirement plan contribution made on an after-tax basis that may qualify for tax-free distributions when applicable requirements are satisfied.

A 401(k) plan designed to satisfy certain nondiscrimination requirements through specified employer contributions and other applicable requirements.

A summary of certain information reported on Form 5500 that generally must be provided to participants and beneficiaries for plans subject to the requirement.

An auditing standard issued by the AICPA's Auditing Standards Board for audits of nonissuers.

The auditing standard that significantly revised auditor responsibilities and reporting requirements for ERISA employee benefit plan financial statement audits.

An auditing standard that revised requirements and guidance for identifying and assessing risks of material misstatement.

An auditing standard addressing the auditor's consideration of an entity's ability to continue as a going concern and related auditor reporting.

The federal agency responsible for administering and enforcing federal securities laws, including reporting requirements affecting certain employee benefit plans.

Federal legislation containing numerous changes to retirement plan rules, including provisions affecting eligibility, contributions, distributions, RMDs, and plan administration.

An investment portfolio managed specifically for an individual investor or plan rather than through a pooled investment fund.

A framework for service auditor reports that provide information about controls at organizations providing services to other entities.

A service auditor's report addressing controls at a service organization relevant to user entities' internal control over financial reporting.

A report addressing the design and implementation of relevant service-organization controls as of a specific date.

A report addressing the design and implementation of relevant controls and their operating effectiveness over a specified period.

A service auditor's report addressing controls relevant to security, availability, processing integrity, confidentiality, or privacy.

A participant-focused document explaining key plan provisions, benefits, rights, responsibilities, and claims procedures.

AICPA standards governing various attestation engagements, including standards underlying SOC 1 examinations.

An investment option designed to preserve principal and provide relatively stable returns, commonly offered in defined contribution retirement plans.

An outside service provider that assists a plan sponsor with functions such as plan administration, compliance testing, participant records, and government filings.

A person or entity holding or managing plan assets in accordance with the plan's trust agreement and applicable fiduciary requirements.

A DOL program allowing eligible plan officials to voluntarily correct certain ERISA fiduciary violations and receive specified relief when program requirements are met.