Planned Changes to the Regulatory Definition of Fiduciary

The Employee Benefits Security Administration (EBSA) plans to amend the regulatory definition of “fiduciary.” A large number of plan sponsors rely on the services of pension consultants and financial asset appraisers. As such, in June 2010, EBSA will propose to amend the current definition to include these service providers, essentially making them subject to the …

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Establishing an Investment Committee for 401(k) Plans

Plan sponsors have a fiduciary responsibility to manage the investment options offered to participants. ERISA requires that these investments be monitored on an ongoing basis for appropriate use and continued prudence. In order to ensure this happens, plan sponsors should establish an investment committee to oversee and manage all investment processes for the plan. The …

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What is Compensation?

Compensation is key for 401(k)’s and other employee benefit plans. In many plans employees make contributions based on a percentage of their compensation. Other times, employer matching or profit sharing uses compensation as the basis for allocating employer contributions to employees. Compensation is generally defined as gross wages, which are subject to income tax withholding. …

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