These plans, also known as open multiple employer plans, allow small businesses to join together to offer defined contribution retirement savings benefits.
Tag: Department of Labor
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.
The Plan Sponsor Council of America has heard concerns from its members that they have been or may be subjected to enforcement actions even though the DOL and IRS have not issued comprehensive guidance on missing participants that provide a clear roadmap for compliance.
From the recent fiduciary rule hold to modern, advanced technology, panelists examine how participant advice has widely grown in the past years.
When a plan is abandoned, custodians are left holding the assets of the plan, but lack the authority to terminate the plan and to distribute the plan's benefits to participants.
The compliance assistance program will increase awareness and understanding about basic fiduciary responsibilities when operating a retirement plan.