…named fiduciary is, therefore, the plan’s CEO; the trustee, its CFO; the 3(38) investment fiduciary, the plan’s CIO; and the 3(16) administrative fiduciary is its COO. The ERISA-named fiduciary/CEO holds the highest level of fiduciary responsibility for the plan, acts as its principal fiduciary and…
…liabilities for the fiduciary responsible for selecting and contracting with the outsourced fiduciary. Breach of contract is the most obvious of these, but there is also the matter of monitoring/reviewing with the outside fiduciary that I mentioned previously. In addition – and this should go…
Fiduciary regulations continue to evolve, much to the exasperation of those who are not experts in the field but are still acting as fiduciaries for their company’s retirement plan. The Fiduciary Rule proposed by the Department of Labor (DOL) went through a number of permutations…
…that may result in lower plan costs. As an adopting employer in a MEP, what is your fiduciary role? One of the key benefits of participating in a multiple employer plan is fiduciary relief-as the MEP sponsor assumes principal fiduciary responsibilities associated with sponsoring a…
…the retirement plan against misappropriation of funds by individuals handling the plan’s assets. However, the fidelity bond does not protect against claims for losses sustained because of a breach of fiduciary duty. Fiduciary Liability Insurance Protection Fiduciary liability insurance provides protection for trustees and other…
…the definition of who could be classified as a fiduciary. Essentially, under the new rules anyone serving as an ERISA fiduciary has the authority to control and manage the operation of a retirement plan, but must do so solely in the best interest of plan…
…which makes hiring of an independent 3(16) fiduciary so attractive. A 3(16) fiduciary can help ensure that each plan is administered in compliance with the new rules, and that CARES Act features that can help the plan’s participants get through this difficult time are all…
…it could very well be that PEP governance will in fact take a dramatic departure from established ERISA governance in this respect. Service providers and advisors tend not to like the “independent board made up of adopting employers” answer because a board can be hard…
…Compliance rules for BICE differ for ERISA and non-ERISA Plans. In summary, key provisions of the DOL Fiduciary Rule are already in place and are significantly impacting the landscape of investment advice and fee structure. The main building blocks of the Rule are fiduciary advice,…
…a 3(16) fiduciary acts as the sole plan administrator, and therefore is responsible for managing the plan’s day-to-day operations. A 3(38) fiduciary can only be a bank, insurance company, or registered investment adviser; here the plan sponsor hands over authority to the 3(38) fiduciary to…
The fiduciary rules governing investment advice by Registered Investment Advisers (RIAs) and broker/dealers are currently in a state of transition. The “DOL” prefix no longer applies- the 2017 Department of Labor (DOL) fiduciary standard, also known officially as the “Conflict of Interest” rule, was repealed…
…against losses due to fraud or theft by people who handle the plan’s funds or property. Fiduciary insurance, on the other hand, protects the fiduciaries themselves against losses due to breaches of fiduciary responsibility. It’s important to note that while many plan fiduciaries may have…