Image alt tag

Page not optimized for mobile browsing

DST vision is best viewed on desktop and tablet

The Muni-Ladder Interest Rate Scenario Tool is only available on desktop and tablet.

PROCEED GO TO LORDABBETT.COM

Error!

There was a problem contacting the server. Please try after sometime.

Sorry, we are unable to process your request.

Error!

We're sorry, but the Insights and Intelligence Tool is temporarily unavailable

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Error!

We're sorry, but the Literature Center checkout function is temporarily unavailable.

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Tracked Funds

You have 0 funds on your mutual fund watch list.

Begin by selecting funds to create a personalized watch list.

(as of 12/05/2015)
View All Tracked Funds
View All Tracked Funds

Quick Links

Follow Us

Pending Orders

You have 0 items in your cart.

Subscribe and order forms, fact sheets, presentations, and other documents that can help advisers grow their business.

Check Out Go Literature Center

Reset Your Password

Financial Professionals*

Your password must be a minimum of characters.

Confirmation Message

Your LordAbbett.com password was successully updated. This page will be refreshed after 3 seconds.

OK

 

Practice Management

Prepare Now for Fiduciary Rules

March 21, 2012
10 Views

New regulations require plan sponsors to acquire and provide more information.

This Practice Management article is intended for financial advisors only (registered representatives of broker dealers or associated persons of Registered Investment Advisors).
 

The Department of Labor has slightly delayed the deadlines on significant new affirmative obligations for fiduciaries of retirement plans subject to the Employee Retirement Income Security Act (ERISA).

Although the deadlines have been pushed to July 1, 2012, employers should be preparing now to ensure that they are ready to comply with the new requirements.

Under one set of obligations, fiduciaries responsible for selecting service providers for retirement plans (i.e., investment managers, recordkeepers, and certain other service providers that receive indirect compensation) must consider a series of new information disclosures provided by the prospective service providers before making a selection.

Disclosures include information regarding the nature of the services to be provided, the extent to which the service provider is acting as a fiduciary, and the amount and type of compensation the service provider will receive. A fiduciary that fails to consider the new information disclosures will cause the retirement plan to engage in an ERISA prohibited transaction.

Under a second set of obligations, fiduciaries of individual account retirement plans—such as 401(k), 403(b), and 457(b) plans—that allow participants to direct the investment of their accounts have a new affirmative duty to disclose certain information to participants.

The information to be disclosed includes general plan information (e.g., direction as to how to provide investment instructions), information about plan expenses charged to participant accounts, and detailed information about plan investment alternatives. The new regulations require detailed disclosure on an annual basis and, in the case of plan expense information, on a quarterly basis. A fiduciary's failure to satisfy the new disclosure obligation could result in a breach of fiduciary duty under ERISA.

The new obligations demand that plan sponsors:

  • Provide training to plan fiduciaries, including investment committees, on new fiduciary obligations.
  • Contact plan service providers about information to be provided.
  • Update recordkeeping and communication systems to satisfy the quarterly disclosure requirements.
  • Review and evaluate information disclosures.
  • Make and carry out fiduciary decisions. 

Brian M. Pinheiro is partner-in-charge and Kurt R. Anderson is counsel in the employee benefits and executive compensation group with Ballard Spahr.

RELATED TOPICS
image

 

RELATED CONTENT

The information provided is for general information purposes only and is not intended to be legal, tax or investment advice. The information contained herein has been provided by sources other than Lord Abbett which are believed to be reliable; however Lord Abbett cannot guarantee the accuracy or completeness of this information.

Please confirm your literature shipping address

Please review the address information below and make any necessary changes.

All literature orders will be shipped to the address that you enter below. This information can be edited at any time.

Current Literature Shipping Address

* Required field