Recent Multiple Employer Plan Rule Changes Could Benefit Small Businesses

A multiple employer plan (MEP) is a single plan that is adopted by several employers who are not under the same corporate ownership umbrella.  Historically, in order to establish a multiple employer plan, all of the employers joining the plan must share a “common nexus.”  This means that they must be in some way related to each other, for example, by doing business in the same industry.  Two unrelated businesses are not allowed to sponsor a multiple employer plan together. Continue reading

Will the DOL’s Proposed Fiduciary Rule Change Affect You as a Plan Sponsor?

The Department of Labor (“DOL”) has submitted their final draft of the proposed fiduciary rule to the Office of Management and Budget for final review and approval.  This means that the final rule is likely to be published within the next several months. Continue reading

Why the Results of Tibble V Edison Should Not Concern the “Well-Educated Plan Fiduciary”

There has been a lot of national press over the recent Supreme Court Case Tibble V Edison, which involves the question as to whether a plan fiduciary has an ongoing duty to monitor a plan’s investments.

The basic facts of the case are as follows: Continue reading

Pension Consultants included in PLANADVISER’s Top 100

(Springfield, MO, February 6, 2015) – Pension Consultants, Inc., a leader in offering in-depth, un-conflicted advice on every aspect of retirement plan management, was recently recognized as one of the country’s Top 100 Advisers of 2015 by PLANADVISER. PLANADVISER, a nationally recognized and leading resource for advisers and consultants in the retirement planning industry, compiles the Top 100 listing annually.

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Fidelity Settles 401(k) lawsuits with Employees

In the past, we’ve talked about the roles and responsibilities of being a fiduciary. Fiduciaries to retirement plans have the responsibility to monitor the plan’s service providers, to make sure agreements are reasonable and to confirm that services being provided are necessary.

Recently, Fidelity Investments, the nation’s largest retirement plan provider, was sued by 50,000 current and past employees. Continue reading

When Retirement Plan Service Providers Are Considered Fiduciaries

There are two ways one can become an ERISA fiduciary: (1) by being specifically named in the plan document, or (2) by actions that illustrate fiduciary by function. Normally, an employer, a retirement committee, or some other specific plan administrator is designated through option (1). As for (2), however, the possibilities of who can become a fiduciary are often a bit more open-ended. As employers and sponsors of a retirement plan, it’s important to fully understand the contracts between the plan and service provider and to have full knowledge of what parties are a fiduciary to the plan. Continue reading

Washington’s Answer to the Retirement Readiness Issue

Recently proposed budgets and legislation illustrate a trend, and the trend in Washington is retirement readiness. In 2014’s First Quarter, the notion of improving retirement readiness—both by making it easier for lower income individuals to save for retirement as well as by easing the burden on small employers in offering benefits plans—has been presented in budget and legislative proposals. This blog will summarize some of Washington’s key proposals, including those relevant provisions within President Obama’s proposed budget for 2015, Senator Collins’ and Nelson’s Retirement Security Act of 2014, and Senator Harkin’s USA Retirement Funds Act of 2014. Continue reading