Please access our summary of the Labor Department’s long awaited final rule on Financial Factors in Selecting Plan Investments here. We find the approach in the investment selection process for fiduciaries to remain consistent with the long-imposed ERISA framework. ...
Regulations
DOL Propose Rule on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights
INTRODUCTION On October 14, 2021, the Department of Labor (DOL) issued proposed rule, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights , which replaces the current regulation, the Financial Factors in Selecting Plan Investments rule...
DOL Final Rule Prohibited Transaction Exemption 2020 02 for Investment Fiduciary
ERISA and the IRC establish prohibited transaction provisions that generally exclude fiduciaries, with respect to workplace retirement plans (Plan or Plans) and individual retirement accounts and annuities (IRAs), from engaging in self-dealing and receiving...
ERISA CYBERSECURITY Best Practices & TIPS
The Employee Benefits Security Administration of the Department of Labor issued a new guidance for plan sponsors and fiduciaries regulated by the Employee Retirement Income Security Act (ERISA). The guidance offers tips and best practices in three areas: Tips for...
Pooled Employer Plan
POOLED EMPLOYER PLAN (PEP) created in 2019 under the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) intends to: Extend retirement plan accessibility especially to small employers (according to the Federal Reserve Report on the Economic...
DOL Final Rule: Financial Factors in Selecting Plan Investments
On November 13, 2020, the DOL issued final regulation, to promulgate principles of fiduciary standards for selecting and monitoring investments, and set forth the scope of fiduciary duties surrounding nonpecuniary issues. The final rule makes five major amendments to...
DOL Interim Final Rule: Pension Benefit Statements – Lifetime Income Illustrations
The Department of Labor’s Employee Benefits Security Administration (EBSA) announced an interim final rule (IFR) for administrators of defined contribution retirement plans, such as 401(k) plans. EBSA is issuing the rule in response to the Setting Every Community Up...
2020 Social Security Cost of Living Adjustment Announced
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2018 through the third quarter of 2019, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.6 percent COLA for 2020. Please retrieve the Social...
2020 HSA Plan Limits
On May 22, 2019, the Internal Revenue Service issued Revenue Procedure 2019-25, announcing the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs), as determined under the Internal Revenue Code § 223. Here is a comparison of the HSA calendar year 2019 and 2020 annual limits.
Wong, et al vs. Fidelity – Finding New Ways to Get Revenue
In its thirst to maintain and grow assets under administration in an increasingly competitive and dwindling fee environment, a recordkeeper must find a balance between the services it offers and the overall (direct and indirect) revenue generated in support of such...
Davis vs. Stadion Money Management, LLC + United of Omaha Life – a First Look
This class action lawsuit shines a light onto the revenue sharing (or possible self-dealing and prohibited transactions) relationship between a recordkeeper and a managed account provider. Although it is premature to suggest who will prevail in this suit, it is fair...
A Reflection on the 8th Circuit Appeal Court’s Decision to Dismiss Fiduciary Claims Against American Century
On June 30, 2016, a class action complaint was filed by Steve Wadman, et al (Plaintiffs), against American Century (Defendants). On January 23, 2019, Chief Judge Greg Kays, issued a finding of facts and conclusion of law and dismissed all counts in favor of...
2019 Annual Qualified Retirement Plan Contribution Limits
On November 1, 2018, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement related items for Tax Year 2019.
2019 HSA Plan Limits
On May 14, 2018, the Internal Revenue Service issued Revenue Procedure 2018-30 , announcing the 2019 inflation-adjusted amounts for Health Savings Accounts (HSAs), as determined under the Internal Revenue Code § 223.
Response to the 5th Circuit Appeal Court’s Decision
In response to the 5th Circuit Appeal’s Court decision, Mabel Capolongo, Director of Enforcement Regional Directors at the DOL today issued “FIELD ASSISTANCE BULLETIN NO. 2018-02” which states…
5th Circuit of Appeal Vacates the Fiduciary Rule
We have provided here the Dallas District Court order and the 5th Circuit Court Appeal decision.
Philip Chao in InvestmentNews Article on Retirement Plan Advisers Needing B-Ds
Philip Chao quoted in InvestmentNews article “Do specialized retirement plan advisers even need a broker-dealer?”
Philip Chao in InvestmentNews Article on Managed Accounts Push in 401(k) plans
Philip Chao quoted in InvestmentNews Article “401(k) Managed Account Push Rife with Conflicts of Interest”.
BICE Implementation Delayed Until 07-01-2019
The U.S. Department of Labor has announced an 18-month extension from Jan. 1, 2018, to July 1, 2019, of the special Transition Period for the Fiduciary Rule’s Best Interest Contract Exemption.
Philip Chao in InvestmentNews Article on Annuities in 401(k) plans
The Trump administration wants to give a shot in the arm to annuities in 401(k) plans by encouraging rules to make it more palatable for plan sponsors to offer such products.