In addition to being barred as serving as a fiduciary for five years, the fund manager is ordered to make more than $45,000 in restitution to the plan, according to a Department of Labor news release.
Preston Rutledge seems to be enjoying relatively little opposition as he moves closer to becoming the Assistant Secretary of Labor for the Employee Benefits Security Administration—a key position in the federal government tasked with enforcing ERISA.
The new delay is for 18 months.
IRS compliance questions have been removed from the form.
House and Senate Democrats hope to pass legislation to “put union pension plans back on solid footing,” but their bicameral position in the minority makes this a tall task.
Employer and employee contributions to the multiple employer welfare arrangement were found in offshore Bermuda accounts.
The 11th Circuit ultimately ruled that it is common sense to conclude that since a litigant can renounce his most basic freedoms under the United States Constitution, he is able to waive the protection of ERISA’s statute of repose.
Until the final rule’s publication in the Federal Register, the exact details and length of the second enforcement delay will remain unclear, but industry reports are widely discussing an 18-month delay.
The future head of EBSA would play a substantial role in the fate of the fiduciary rule.
The list of regulatory and legislative challenges affecting employers and their retirement plan consultants can seem endless, and when linked to the increasing litigation from the plaintiffs’ bar, it can seem impossible to reach a point of certainty.
Specific policy changes and plan sponsor initiatives can make guaranteed lifetime income a norm in the DC plan space, TIAA suggests.
The PBGC and DOL also are providing relief similar to that provided to Hurricane Harvey victims.
Michael Barry, president of the Plan Advisory Services Group, discusses possible implications of the DOL fiduciary rule and how the agency missed fixing what needs to be fixed.
As the DOL lays out, the primary purpose of the proposed delay of full enforcement is to give the department the time necessary to consider possible changes and alternatives.
The underlying complaint challenges the process and motivation surrounding the termination of a group annuity contract.
In general, if a covered service provider will continue after the fiduciary rule to provide services only in a non-fiduciary capacity, or has already effectively disclosed investment advice fiduciary status, no additional disclosure would be required under the 408b(2) regulation.
“The DOL conflict of interest rule poses risk to a firm if [practice leaders] knowingly allow advisers to manage underperforming portfolios for clients when a better-performing portfolio with a similar risk level is available from the home office,” Cerulli's Tom O’Shea warns.