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Defined Contribution Spotlight Archive

March 13, 2017

DOL Reviews, Recommends Extension of Fiduciary Rule’s Applicability Date

In early February, the Trump administration asked the Department of Labor (DOL) to review and consider revising or rescinding the conflict-of-interest (“fiduciary”) rule. That rule, which is scheduled to be applicable on April 10, serves as a uniform fiduciary standard for financial advisors. On March 1, the DOL responded by proposing a 60-day extension to the applicability date, including a 15-day comment period that will end on March 17. If the delay is approved, the applicability date will change from April 10 to June 9. As a result, it is likely that we will not know whether there will be a delay until late March or even early April. There is also a chance that a delay will be challenged in court. Please continue to check our Defined Contribution Spotlight web page for more information and updates related to the ongoing review of the DOLs fiduciary rule.

 

November 29, 2016

5 Things the DOL Wants You to Know About TDFs — That You May Have Overlooked  

Target date funds continue to expand in usage and popularity — but there are some things the Department of Labor wants you to know about TDFs that you may have overlooked. 

Source: NAPA-net

 

November 3, 2016

DOL Rule Does Not Favor Open Architecture

Capital Group senior counsel Jason Bortz explains why the Department of Labor conflict of interest rule does not favor open architecture over single-fund-family solutions. 

 

October 28, 2016

DOL’s First FAQ “Wave” Focuses on BIC  

The 24-page document covers a lot of ground in the form of 34 questions, and while much of it seems to confirm what had been understood (or assumed), the first wave of FAQs certainly provides some comfort — and in some cases clarifies key issues. 

Source: NAPA-net

 

October 12, 2016

Fiduciary Rule Set to Trigger Surge in Fund Reviews  

A new report claims that the Department of Labor’s fiduciary rule will cause a surge in mutual funds being reviewed and replaced in DC retirement plans, even before the January 1, 2018 deadline for full compliance.

Source: NAPA-net

 

September 2016

Legal Insights: Passive Does Not Reduce Fiduciary Liability

Recent Department of Labor emphasis on fees combined with numerous 401(k) plan fee-related lawsuits have led some plan fiduciaries to question whether offering actively managed funds is riskier than passive funds that are typically less expensive.

August 25, 2016
DOL Issues Final Rule for State DC Plans 

The Department of Labor issued today its final rule governing state-sponsored retirement plans for private workers, clarifying that such plans do not fall under ERISA. The measure clears the way for all states to establish plans, with requirements that the plans must be built and administered by the state, minimize the involvement of employers and have opt-out provisions from automatic enrollment for employees.
Source: Ignites

July 19, 2016
A Pension Protection Perspective 

It’s hard to believe, but the Pension Protection Act of 2006 will be a decade old next month. And it’s probably done more good for the nation’s retirement security than most realize.
Source: napa-net.org

July 13, 2016
The New DOL Rule’s Grandfathering Provisions

A strong grandfathering provision is included in the DOL’s final conflict-of-interest regulation. Under this provision, an existing mutual fund that pays a 12b-1 fee would be permitted to continue as is. In this video, Clarke Camper, leader of Government Relations for Capital Group, shares his thoughts.

July 5, 2016
The DOL Rule: The Expanded Definition of Fiduciary Advice

The final Department of Labor fiduciary conflict-of-interest rule has a very broad definition of investment advice. As a result, for the first time many financial professionals will be thought of as ERISA fiduciaries when the rule goes into effect in 2017. In this video, Jason Bortz, associate counsel for American Funds, discusses the new rule and how it creates a new definition of fiduciary advice. He also suggests how you can adapt to this new regulatory world.

May 19, 2016
SEC Plans to Propose Fiduciary Rule Next April 

The SEC plans to propose rules for raising investment advice standards and authorizing non-governmental examinations of advisers next spring.
Source: InvestmentNews

July 25, 2016

Congressman Introduces Save Our Social Security Act  

Congressman Reid Ribble (R-Wisconsin) has introduced the Save Our Social Security Act in order to make Social Security solvent for another 75 years. 

Source: planadviser

 

July 13, 2016
Congress Gets Universal Workplace Retirement Bill 

Legislation creating universal retirement accounts for American workers was introduced Wednesday by Rep. Joe Crowley, D-N.Y. The proposed SAVE UP — Secure, Accessible, Valuable, Efficient Universal Pension accounts — legislation calls for employers with 10 or more employees that do not offer retirement plans to open individualized retirement accounts for employees and contribute 50 cents per hour worked per employee. Employers with qualified retirement plans in place can keep contributing to those plans.
Source: Pensions&Investments

February 26, 2016
Why Are the States Leading on Auto-IRA? 

A large number of states are currently exploring implementing a state-run auto-IRA option — but why these states in particular?
Source: napa-net.org

August 31, 2016

Decision in AXA Excessive-Fee Lawsuit Preserves the Status Quo  

A judge’s recent decision favoring AXA Equitable Life Insurance Co. in a lawsuit over excessive mutual fund fees in variable annuities was a win of sorts for insurance companies, in that it upholds a traditional structure of offering investment options. 

Source: InvestmentNews

August 30, 2016

District Court Dismisses 401(k) Fiduciary Breach Lawsuit Against Chevron  

A lawsuit against Chevron Corp. over alleged 401(k) fiduciary breaches has been dismissed by a U.S. District Court judge in Oakland, California. 

Source: Pensions & Investments

July 25, 2016

Congressman Introduces Save Our Social Security Act  

Congressman Reid Ribble (R-Wisconsin) has introduced the Save Our Social Security Act in order to make Social Security solvent for another 75 years. 

Source: planadviser

 

July 2016
Let's Clear Up Any Confusion About Actively Managed Funds 

Over the last several years, fee litigation under the Employee Retirement Income Security Act (ERISA), as amended, has caused some plan sponsors to rethink the investment options they make available to participants in ERISA-covered plans.
Source: PlanSponsor Magazine

June 30, 2016
Fiduciaries of Small 401(k) Off the Hook for Excessive Fee Suit 

Damberg v. LaMettry’s Collision, Inc.: A lawsuit that suggested retirement plan excessive fee suits were moving down market has been voluntarily dismissed by the plaintiffs.
Source: planadviser


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This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.