DOL Throws Stumbling Block In Way of Lifetime Income Options Serving as Default Investment Option

Because of a recent information letter issued by the DOL, it is unlikely many plan sponsors will adopt a lifetime income option as the default investment in their 401(k) plans. This letter, issued to TIAA, makes it clear lifetime income options cannot serve as a QDIA in 401(k) plans. In recent years, there has been … More DOL Throws Stumbling Block In Way of Lifetime Income Options Serving as Default Investment Option

House of Representatives Enters the Fiduciary Fray

The ongoing saga of the DOL’s fiduciary rule is now in its eighth year. The rule was first proposed in 2010 and promptly withdrawn amidst much controversy. The rule was re-proposed in 2015 and became final last year. Despite expectations that the Trump administration might scrap the Rule entirely, it has survived thus far. The … More House of Representatives Enters the Fiduciary Fray

Giving Thanks to Plan Participants, Plan Sponsors and the DOL

Giving Thanks to Plan Participants, Plan Sponsors and the DOL Thanksgiving is my favorite holiday. Lots of food, football, good cheer and you don’t have to buy presents. It is also a time to reflect and be thankful for the good fortune in our lives, and for those who love us or have helped us … More Giving Thanks to Plan Participants, Plan Sponsors and the DOL

ERISA Update

At a recent Western Pension Benefit Council/ASPPA Conference the new Fiduciary Rule was reviewed. The new Fiduciary Rule (definition) has come under significant criticism by many industry groups and Congress, some of whom brought litigation to redefine and suspend the effect of this regulation. To date, the DOL shows no intent to revise their position … More ERISA Update

“Conflict of Interest” or “Fiduciary” Rule: A Plan Sponsor’s Q&A – Part II

Last month we featured the first part of our Q&A series. Now enjoy the final five questions and wrap-up. 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 … More “Conflict of Interest” or “Fiduciary” Rule: A Plan Sponsor’s Q&A – Part II

Allowable Plan Expenses: Can the Plan Pay?

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 … More Allowable Plan Expenses: Can the Plan Pay?

“Conflict of Interest” or “Fiduciary” Rule: A Plan Sponsor’s Q&A – Part I

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 … More “Conflict of Interest” or “Fiduciary” Rule: A Plan Sponsor’s Q&A – Part I