ERISA Pension Plan Audit Specialists — DC, Maryland & Virginia

    Defined Benefit Pension Plan Audit Services — DC, Maryland & Virginia

    Quick Answer: When does a defined benefit pension plan require an audit?

    Under ERISA Section 103(a)(3)(C), defined benefit pension plans with 100 or more participants must have their Form 5500 annual report include an audited financial statement by an independent CPA. The SAS 136 audit standard (effective 2021) requires pension plan auditors to obtain additional plan management representations and perform expanded procedures.

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    Defined Benefit Plan Audit Challenges We Solve

    SAS 136 (effective 2021) significantly increased audit scope and documentation requirements

    Many plan administrators are unaware that frozen plans still need annual ERISA audits

    Actuarial assumption changes create significant audit implications that many plan sponsors don't anticipate

    Late Form 5500 filings: $250/day penalty (up to $150,000) for missing audit attachment

    PBGC variable-rate premiums require precise underfunding calculations that must reconcile to audited figures

    Defined Benefit Pension Plan Audit Services

    From SAS 136 compliant audit procedures to PBGC reconciliation and Form 5500 attachment preparation, we handle the full scope of defined benefit plan compliance.

    ERISA 103(a)(3)(C) Defined Benefit Plan Audit

    Full ERISA Section 103(a)(3)(C) audit of defined benefit pension plan financial statements for plans with 100 or more participants, meeting DOL and AICPA SAS 136 requirements for Form 5500 attachment.

    SAS 136 Compliant Audit Procedures

    Audit procedures fully compliant with SAS 136 requirements effective for plan years ending December 15, 2021 and after — including expanded management representations, investment procedures, and updated reporting language.

    Form 5500 Audit Attachment Preparation

    Preparation of the audited financial statements and required disclosures in the format required for Form 5500 attachment, including Schedule H (Large Plan Financial Information) and all required supplemental schedules.

    Plan Document Compliance Review

    Review of the plan document and amendments against actual plan operations to identify qualification failures — ensuring the plan operates in accordance with its written terms and applicable law (including SECURE Act and SECURE 2.0 updates).

    PBGC Reporting Reconciliation

    Reconciliation of PBGC variable-rate premium calculations to the audited funded status figures, confirming that the underfunded vested benefits calculation for PBGC premium purposes is consistent with the audited financial statements.

    Actuarial Report Review & Reconciliation

    Review of the actuarial report (Schedule SB) and reconciliation of the present value of accumulated plan benefits (PVAB) to the plan's financial statements — a required audit procedure under SAS 136 and AICPA Employee Benefit Plan audit standards.

    Defined Benefit vs. 401(k) Plan Audit — Key Differences

    Feature401(k)/DC Plan AuditDefined Benefit Plan Audit
    Asset valuationParticipant-directed, market valuesActuary-determined; complex valuation
    Main audit riskParticipant loan compliance, timely contributionsActuarial assumptions, funding status
    PBGC reportingNot applicableVariable and flat-rate premiums
    Frozen planReduced complexityStill requires full audit if 100+ participants
    SAS 136 impactExpanded representationsMore significant — complex plan terms
    Typical cost$5,000–$20,000$10,000–$35,000

    Our Defined Benefit Plan Audit Process

    A 4-step process from plan document review to Form 5500 audit attachment issuance.

    1

    Plan Document & Actuarial Report Review

    Review the plan document, all amendments, and the current actuarial report (Schedule SB) to understand plan terms, actuarial assumptions, and funding status before fieldwork begins.

    2

    Investment & Benefit Payment Testing

    Obtain and reconcile investment account statements from all custodians; test benefit payments to verify payments were made to correct beneficiaries in correct amounts per the plan document and actuarial data.

    3

    Actuarial Reconciliation & PBGC Review

    Reconcile the present value of accumulated plan benefits (PVAB) from the actuarial report to the financial statements; review and reconcile PBGC variable-rate premium calculations to the audited funded status.

    4

    SAS 136 Report Issuance & Form 5500 Attachment

    Issue the SAS 136 compliant ERISA Section 103(a)(3)(C) audit report and prepare the audited financial statements in the format required for attachment to Form 5500 (Schedule H and supporting schedules).

    Defined Benefit Pension Plan Audit FAQs

    Common questions from plan sponsors and administrators in DC, Maryland & Virginia about ERISA defined benefit plan audit requirements.

    Your Pension Plan Audit Needs SAS 136 Expertise. We Deliver It.

    Whether your plan is active or frozen, we provide SAS 136 compliant defined benefit plan audits with PBGC reconciliation and Form 5500 attachment — on time, every year.

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    Serving pension plan sponsors and administrators in Washington DC, Maryland, Virginia, and the greater DMV area.