BB&K's Isabel Safie Discusses the Implications of IRS’ Definition of Governmental Plan Status
Not long after President Obama expressed the desire that the Department of Labor (DOL) implement a fiduciary rule for brokers who work on retirement plans; did one of Wall Street’s paid minions strike back....more
In This Issue:
- It's The Plan Sponsor's Responsibility, Just Because.
- Reasons When A Plan Sponsor Should Change Their Plan Providers.
- What Retirement Plan Sponsors Have To Fear.
- A great Retirement Plan?...more
You already know that employee benefit plans established by governmental entities are exempt from ERISA.
But ERISA might apply if the employee benefit for the government employee is established through an association....more
Section 413 of ERISA provides in general that no action for breach of fiduciary duty may be brought after the earlier of: (1) six years after (A) the date of the last action which constituted a part of the breach, or (B) in...more
I have been to many funerals and many 401(k) enrollment meetings and I have to say that most funerals are livelier than 401(k) enrollment meetings. It doesn’t have to be that way....more
Employers need to make sure that their employees know when benefits shift from one plan to another as illustrated by this case from Utah:
Martin Marietta Corporation (Martin) operated a cement plant that it later...more
Lockhead Martin settled their excess fee lawsuit concerning their 401(k) plan by making a $62 million settlement with plan participants. That is probably the highest excess fee settlement on record. I know how people think...more
People are afraid of change and sometimes; change can be a good thing. Change for the sake of change isn’t a good idea and there are times when change is absolutely necessary. This article is about when it’s probably a good...more
The Department of Labor recently issued final regulations implementing the annual funding notice that defined benefit plans are required to provide under Section 101(f) of ERISA. The final regulations are similar to the...more
In a somewhat surprising case, the US Court of Appeals for the Ninth Circuit has ruled that a participant may change his prior written beneficiary designation by a telephone call to the plan sponsor.
The Becker v....more
Many businesses are not always aware of the potential requirement to file Form 5500 each year; the form details financial conditions, investments and operations of benefit plans, as required by ERISA and the IRS. ...more
In This Issue:
- Marketing and Management Tips For Retirement Plan Providers
- There is a price to pay for being outspoken
- Never give into disillusionment
- Tread Carefully with Plan Provider...more
I love bagels and one of the greatest debates out there is what makes them great. People swear up and down that it’s the water from New York. They believe it so much so that there are businesses who advertise that they either...more
As a retirement plan provider, you are often asked to give a referral to other retirement plan providers. If you are a financial advisor, you maybe asked for a referral for a third party administrator or an ERISA attorney....more
A few years ago, researchers from the business schools at the University of Indiana and the University of Texas at Austin looked at some data to try to figure out why many poor 401(k) investment choices linger on fund...more
Employers and plan sponsors must comply with numerous filing and notice deadlines for their retirement and health and welfare plans. Failure to comply with these deadlines can result in costly penalties. To avoid such...more
In This Issue:
- Small Steps That Plan Sponsors Can Take To Limit Their Fiduciary Liability
- "Plain" Advice to Retirement Plan Sponsors
- Pick Plan Providers Just Because They Are Cheap Is A Bad...more
When it comes to our health, small preventative steps can help us avoid greater harm to our health later down the line. We have been told of the great health benefits of taking baby aspirin for heart health and how we can...more
Plan sponsors that are scheduled to file determination letter applications with the IRS for their qualified retirement plans between February 1, 2015 and January 31, 2016, (Cycle E sponsors), should be aware that the IRS...more
I don’t know about you, most of the advice I got growing up was usually wrong. Maybe some very unsuccessful people surrounded me when I was younger, but advice can be biased and self-serving at times. The best advice I would...more
The Issue: During a recent Department of Labor (“DOL”) investigation for a local California employer, we experienced an increased focus by the DOL on plan expenses. While this isn’t necessarily surprising given the increased...more
Unfortunately, I have gotten involved in the politics of my local village which contains so much conflicts of interest and cronyism, it reminds me of the retirement plan business when I started in 1998. A lot of the fighting...more
I remember as a kid that there was move to use margarine because of the cholesterol that was in butter. Who can forget those talking Parkay carton commercials? Of course, we later learn that many margarines had high amounts...more
A federal district court in Iowa dismissed a putative class action complaint brought by several 401(k) plan sponsors who alleged that Principal Life Insurance Company breached its fiduciary duties to the plans by charging...more
Plan sponsors seeking to provide employees with the ability to make after-tax contributions to a 401(k) plan may be interested in adding, along with the common Roth contribution feature, non-Roth after-tax contribution and...more
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