Willis Towers Watson offers nine actions for DC plan sponsors to mitigate risks in 2019.
Tag: Department of Labor
The relief relates to the verification procedures for retirement plan hardships and loans, timely remittance of contributions and loan repayments, and blackout notices, as well as the processing of benefit claims.
Modifications to the Form 5500 and Form 5500-SF and their schedules and instructions have been highlighted.
The agency says plan sponsors have fiduciary responsibility for selecting and monitoring Retirement Clearinghouse’s Auto-Portability Solution, but once assets have been transferred from a plan sponsor’s retirement plan, it is no longer a fiduciary with respect to those assets.
The agency is inviting public comment on the proposed exemption and encourages additional proposals.
The DOL relief relates to plan loans and distributions, remittance of contributions and blackout period notices.
These plans allow small businesses within a business group or association to join together to offer defined contribution retirement savings benefits.
Both the DOL and SEC have a September 2019 date for a final action on corresponding fiduciary and best interest rules—could they be collaborating?
In a letter, members of Congress accuse the DOL of “regulation through litigation” and ask that clear guidance regarding valuation and other important issues be developed.
The lawsuit alleged that employee stock ownership plan participants overpaid for company stock.
If there are missing participants that plan sponsors have not made a genuine effort to find, “the entire plan could be disqualified under the tax code and the plan fiduciaries may be found to have breached their ERISA duties,” says Norma Sharara, a partner with Mercer.
Although it did answer the question of whether the decision was made in response to the 5th U.S. Circuit Court of Appeals mandate to vacate the DOL’s fiduciary rule, it is clear that T shares and so-called “clean shares” were created to comply with the rule.
The EBSA’s Plan Investment Conflicts (PIC) project have reviewed conflicts of interest of fiduciary service providers and investment managers of plan asset vehicles that led to conflicted decision making processes, imprudent application of investment guidelines and the payment of excessive fees.
Fiduciaries of the Sacred Heart Hospital Profit-Sharing 401(k) Plan failed to administer the plan after the hospital operations ceased in 2013, according to the DOL.
GAO says in other cases where plans may face complexity, such as selecting a target-date fund or monitoring pension consultants, the DOL has provided general information, including items to consider and questions to ask. It suggests that the DOL do the same with ESG investing.
A multi-agency investigation found that from approximately May 2011 through August 2012, the business owner unlawfully embezzled and converted approximately $31,403 in deferred contributions from employees.
Commenters about the Department of Labor’s regulation say it could result in state restrictions, ratings that will make costs unequal and may provide no inclusion for all small businesses that could benefit from it.
Topics to be covered include: Understanding your plan and your responsibilities; carefully selecting and monitoring service providers; avoiding prohibited transactions; and more.