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.
MagnaCare has been ordered to return at least 14.5 million to ERISA-covered health benefit plans.
EBSA hopes the responses submitted to this RFI can “form the basis of new exemptions or changes/revisions to the rule and prohibited transaction exemptions.”
Long-term, DOL staff is concerned about maintaining the department’s broad litigation and enforcement capabilities in the retirement plan services marketplace.
Many providers have supported the moves by the House and Senate to effectively slow the creation of state- and city-run retirement plans for the private sector, but other parties are severely disappointed by these actions.
Andrew Acosta’s appointment as Secretary of Labor was more or less a non-event from the perspective of the wider media and the general political conversation—but it is an important development for the retirement plan industry.
They key development around “T shares” is that they feature uniform commissions, while “C shares” move compensation away from the point of transaction.