The payment of expenses by an ERISA plan (401(k), defined benefit plan, money purchase plan, etc.) out of plan assets is subject to ERISA’s fiduciary rules. The “exclusive benefit rule” requires a plan’s assets be used exclusively for providing benefits. ERISA also imposes upon fiduciaries the duty to defray reasonable expenses of plan administration. General principles of allowable expenses include the following: The expenses must … Continue reading Allowable Plan Expenses: Can the Plan Pay?
From August 27, 2015 to January 31, 2016, OneAmerica® fielded an online survey to visitors to its participant website to better understand retirement planning and personal finance behaviors and what resources might be most effective in helping plan participants prepare for retirement. A total of 10,829 participants answered questions about their planning triggers and motivations, education and resource preferences and what roadblocks to retirement they … Continue reading Participant Behaviors
As a plan sponsor and fiduciary of your company’s retirement plan, keeping an up-to-date fiduciary file is critical. To begin, we recommend preparing your file in four key sections; contents of each section could include the following: I. Documents: plan document, IRS determination letter, summary plan description, investment policy statement, 404(c) policy statement and notice, form 5500s; service provider contracts; nondiscrimination test results, corporate tax returns, corporate board … Continue reading Organizing Your Fiduciary File
After years of proposed regulation issuance, comment periods, drafting and anticipation, the Department of Labor (DOL) finally published final guidance regarding the definition of “fiduciary” on April 8, 2016. It is important for plan sponsors to understand the reasoning behind, and the scope, of the final rules. The following Q&A is meant to assist you in understanding the regulations and how they pertain to you, your plan … Continue reading “Conflict of Interest” or “Fiduciary” Rule: A Plan Sponsor’s Q&A – Part I