Compliance Stuff

A Supreme Court decision in April made it easier for plaintiffs to keep ERISA prohibited transaction claims in play longer, and just days later a rare ERISA trial resulted in a huge win for a class of 401(k) plan participants . What do retirement plan sponsors and fiduciaries need to know about this new era of ERISA litigation? We’ll break it all down and give you some best practices to stay ahead of a potential new wave of litigation risks. Snapshot of ERISA Fiduciary Rules Fiduciary Status.  Generally, a person is a fiduciary of an ERISA-governed plan if they (1) exercise discretionary authority or control over plan management or plan assets; (2) have discretionary authority or responsibility for the plan’s administration; or (3) give paid investment advice to a plan (or have any authority or responsibility to do so) . Fiduciary Duties.  Plan fiduciaries must follow certain principles of conduct when running the plan, including by acting prudently and solely in the interest ...

  New policy offers option for handling small payments when the owner cannot be located WASHINGTON  – The U.S. Department of Labor’s Employee Benefits Security Administration today announced an  enforcement relief policy  to p rovide retirement plan fiduciaries with an option to help manage small benefit amounts owed to individuals who cannot be located. Under the policy, the department will not take action under the fiduciary duty provisions of the  Employee Retirement Income Security Act  against fiduciaries who transfer entire benefit payments owed to missing participants of $1,000 or less to state unclaimed property funds, if certain conditions are me t. “This policy gives fiduciaries an additional option for handling small outstanding retirement benefit payments owed to missing participants and beneficiaries,” said Assistant Secretary for Employee Benefits Security Lisa M. Gomez. “Our goal is to reunite participants and beneficiaries with their retirem...