A recent appellate court decision underscores the important differences in anti-cutback vesting requirements that exist between “top-hat” plans and retirement benefits for lower-compensated employees.
The district court decision spells out a number of caveats impacting this type of ERISA litigation, explaining why it is dismissing some claims while permitting others to go to a full trial.
A new ruling has emerged in the long-running case, applying instructions from the Supreme Court and the 9th Circuit to reach a verdict favorable to plaintiffs.
Many retirement industry providers will be glad to see the DOL is starting to signal a delay in the applicability date of the full new fiduciary rule and its prohibited transaction provisions.
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.
Several states are in the process of debating and potentially adopting their own legislation relating to the fiduciary responsibilities of broker/dealers and investment advisers.
At least one judge on the three-judge panel that has been assigned to the case seemed to have little sympathy for the basic strokes of the DOL’s arguments.
The Affordable Retirement Advice for Savers Act seeks to repeal the fiduciary rule and clarify what should and should not be considered fiduciary advice in the retirement planning context.
Because revenue-sharing payments are asset based in the plan, plaintiffs argue, “they bear no relation to a reasonable recordkeeping fee and can provide excessive compensation.”
While HSAs aren’t traditionally thought of as a retirement vehicle, the DOL broadened the scope of conflict of interest rules to include these plans due to their long-term savings and investment aspects.
The new SEC Chair is calling on retirement industry stakeholders to weigh in on whether the DOL fiduciary rule is helpful or harmful.