Posts Tagged ‘401k fiduciary’
The “F” Word is Getting a Lot of Attention
The system would feed articles and news regarding these topics to me once a week. On average, I would get 2-5 decent articles per month. Fast forwarding to the past 12 months, I have had to change the frequency to daily so not to be buried by information overload. On Monday alone, there were 10 and that has been consistent for the past year. The point is that the interest in fiduciary responsibilities and best practices in light of the recent market volatility has never received so much attention by the media.
Read MoreTarget-date Funds Under the Microscope
Robert Powell’s article on Marketwatch is a well written overview of the concern Congress has regarding these funds’ performance and construction, which consequentially were given Congress’s blessing in the ’06 Pension Protection Act. However, it was clearly stated in the PPA that a company’s fiduciaries must do their due diligence in reviewing these funds, just like the other investment options in the plan
Read MoreAmerican Benefits Council Opinion on 401(k) Participant Advice : Just Keep it Free of Conflicts
After reading the ABC’s opinion on participant advice, which is being openly scrutinized by various organizations trying to protect the 401(k) participant, I feel it was the most clear and concise of the responses I have read thus far. The following is our interpretation of its points: Don’t Eliminate Advice and Account Management – “Over-swinging…
Read More3 Simple Steps on How to Decrease the Risk of Participant Lawsuits
Step #1: Take Advantage of the Available Safe Harbors. Participants need help, and one of the safe harbors specifically helps participants and protects plan fiduciaries alike. The PPA created the role of PPA Fiduciary Adviser, which provides investment advice for a fee. Most providers have not responded because the regulations are simply too onerous. However,…
Read MoreGrand Rapids 401(k) Expert is Featured Panelist at ’09 fi360 National Conference
Chad Griffeth spoke on a featured panel regarding employee 401(k) advice, and BeManaged’s unique ability to deliver fiduciary advice to participants on a 1on1 basis, while also minimizing their clients’ exposure to fiduciary liability for their 401(k) plan.
Read MoreDoL Proposes Delay On Advice Rule Due to Objections from Fiduciary Industry
The DoL, fresh off releasing “final” ruling on participant advice provisions, is now recommending the delay of this rule for two months until further public commentary is considered.
Read MoreConflicting Interests – DoL 401(k) Participant Advice Rule May Not See Light of Day 1/29/09
“The controversy exists in that the person delivering the advice must adhere to specific fiduciary criteria, but their affiliated firm, whether that’s a broker-dealer, mutual fund company, insurance company, or bank, does not,” said Griffeth. The new rule “opens the door for conflicts of interest to exist on the part of brokerage firms and mutual fund firms at the sake of participants, whom I fear wouldn’t know what questions they should ask to ferret out conflicted advice.”
“…In essence, he said the broker- dealers, insurance companies, banks, and mutual fund companies could play “puppeteer” with the advisers that are meeting with participants to benefit their own pocketbooks, not the participants.” – Chad Griffeth, BeManaged | Actium
Read MoreNew Disclosure Requirements Proposed for Self-Directed Defined Contribution Plans
The U.S. Department of Labor (DOL) recently issued proposed regulations that would require all participant-directed individual account plans (e.g., 401(k) and profit-sharing plans) to make additional disclosures to participants. The regulations are part of the DOL’s continued emphasis on ensuring plan participants and beneficiaries have all the information they need to make informed decisions regarding the management and investment of their retirement savings. If finalized, the regulations would apply for plan years beginning on or after January 1, 2009.
Read More401k Fee Disclosure: A Bloomberg Primetime Special
Two weeks ago, Bloomberg had a prime time special on 401(k) fees, specifically those hidden in the fine print. It was a powerful show, as it demonstrated how difficult it is for professionals, much less participants, to make sense of the fees being charged to numerous plans. Most of those highlighted were plans provided…
Read MoreAre You a Fiduciary?
What Does Fiduciary Mean? 1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit. Investopedia explains Fiduciary 1. Children or elderly people typically need a fiduciary. The person who looks…
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