DOL Fiduciary Rule

The Department of Labor (“DOL”) has been working on revisions to the current “Fiduciary” Conflict of Interest Rule for multiple years but on April 8, 2016, the DOL’s final rule was posted to the Federal Register which is effective June 7, 2016 and applicable beginning April 10, 2017. The rule now defines who is a …

Keep Reading

Forming a 401(k) Plan Committee

As a Plan Sponsor, you have important fiduciary responsibilities which, according to the Employee Benefits Security Administration (“EBSA”) within the Department of Labor (“DOL”), include: Acting solely in the interest of plan participants and their beneficiaries Carrying out duties prudently Following the plan documents (unless inconsistent with ERISA) Diversifying plan investments Paying only reasonable plan …

Keep Reading

ESOP Appraisers Will Not be Named as Fiduciaries…At Least for the Time Being

It was reported in January 2015 that the Department of Labor (DOL) will abandon the “appraiser-as-fiduciary” rule from its planned re-proposal of a broad set of rules affecting fiduciaries and prohibited transactions. This story goes back to 2010 when the DOL issued a proposed regulation that would impose a fiduciary obligation on business appraisers in …

Keep Reading

Plan Corrections Necessary? DOL Corrections Program

If your company offers an employee benefit plan that is subject to the Employee Retirement Income Security Act (“ERISA”), for example a 401(k) plan, it is important to remember that your Company is responsible for ensuring that the Plan and any plan transactions comply with the fiduciary standards ERISA has created. Even though a Plan …

Keep Reading

Have Lost Participants in Your 401(k) Plan?

Lost participants are those participants who have balances in the plan (unclaimed benefits) or have been distributed an amount from the plan (uncashed benefit checks) and cannot be located. The participant either doesn’t know or forgot they have a balance since their employment was terminated or have relocated with no forwarding address. The participant’s account …

Keep Reading

ERISA Accounts – Plan Assets?

Employee benefit plans are seeing increased regulation and disclosure of plan fees including new disclosures of compensation paid to covered service providers in July 2012 (http://www.hhcpa.com/blogs/employee-benefits-audit-services/fee-disclosure-regulations-for-covered-service-providers/). The result of the new fee disclosures and oversight by plan fiduciaries is that record-keepers are expanding their offering of expense accounts, typically known as an ERISA Account, to …

Keep Reading

Plan Restatements and Amendments

Have you recently restated or amended your plan document?  If yes, are you confident that your plan is being administered in accordance with the updated sections?  A common fallacy of the plan administrator is the sole reliance on the third party administrator (“recordkeeper”) to ensure that the plan is being properly administered, subsequent to the …

Keep Reading

401(k) Plan Fees: Various Types and Who Pays

Are you considered a Fiduciary for your Company’s 401(k) plan?  Are you a participant in your Company’s 401(k) plan and looking to get answers on what the different fees are that you are paying to be a participant?  If you answered yes to either of these questions, read on for explanations on a variety of …

Keep Reading

Proposed Changes by the DOL to the Definition of “Fiduciary”

As a follow up to my blog, “Planned Changes to the Regulatory Definition of Fiduciary,” the Department of Labor (DOL) has issued a proposed regulation that further defines when a person becomes a fiduciary of a plan by providing investment advice for a fee or other compensation, thus making them subject to the Employee Retirement Income …

Keep Reading