By: Tim Hayes Financial Advisor - posted in: Employers - Last updated Jun 11, 2019

Retirement Plan Sponsors the DOL Makes Plan’s More Transparent

by | Last updated Jun 11, 2019 | Employers

Retirement plan sponsors it’s time to reconnect with financial advisors and participants. As the DOL followed through on its promise to make retirement plans more transparent with 3 new rules in 4 years.

#1: “Covered” Service Providers (CSP) Must Describe to the Plan Their Services & Fees

This includes financial advisors, consultants, or third-party administrators who expect to receive $1,000 or more in direct or indirect compensation.

Cambridge Investment Research’s DOL Response

#2: Plan Sponsors Must Disclose to Participants:

  • rules about investment instructions
  • fees and expenses paid from their accounts
  • a breakdown of these fees
  • other account charges
  • a plan participant or beneficiary may claim a violation  if not provided.

The LBA Group Report on Rules 1,2 (PDF 6 Pages)

The LBA Group is a Jacksonville, Florida-based CPA firm


#3: The Department of Labor (DOL) Expanded the Definition of an ERISA Fiduciary

A group of nearly 30 Congressional Democrats have protested this expanded definition in a letter to Labor Secretary Hilda Solis, contending that it would backfire and eventually reduce access to investment education and information for plan participants.

The concern is that the definition of “fiduciary” will become so vague that even the most basic education and advice could fall under ERISA status

The goal? The DOL wants to make these plans more transparent. This is an occasion for plan advisors to reconnect with plan sponsors, fiduciaries and participants.

The roadmap for retirement plans is changing. Because of these new regulations, you will have new responsibilities. More will be required from you – and there is much to understand in a relatively short window of time.

At times like these, having a trusted independent advisor is invaluable. I can step forward to help you manage the new rules and responsibilities, all with the service, care and courtesy you have come to expect.

About Financial Advisor Tim Hayes

Independent Financial Advisor

Registered with Cambridge Investment Research, Inc., a broker-dealer with over 3,000 Registered Representatives nationwide. Investment Adviser Representative at Cambridge Investment Research Advisors, Inc., a $94B RIA based in Fairfield, IA. I've held an industry securities registration for 26 years and am subject to SEC and FINRA oversight.

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