ERISA Knowledge Center

ERISA Knowledge Center

ERISA Knowledge Center

Articles

Nevada’s New Fiduciary Standard

Nevada's New Fiduciary Standard As discussed in a previous article, the Department of Labor's Fiduciary rule, which went in to effect on June 9, could have its final applicability date pushed back beyond January 1, 2018 to allow firms more time to come up with more...

A Look at The New Fiduciary Rule’s First Month

A Look at The New Fiduciary Rule's First Month The Department of Labor's Fiduciary Rule went in to effect less than a month ago, and already new concerns surrounding it are arising. The first of these is the struggle of the SEC and DOL to come to an agreement on the...

Is PBGC Coverage Required for Your Plan?

The Pension Benefit Guaranty Corporation was established on September 2, 1974 under President Gerald R. Ford with the signing of ERISA (the Employee Retirement Income Security Act). According to Ford, "Under this law, the men and women of our labor force will have...

The New Fiduciary Rule’s Important Take-Aways

The New Fiduciary Rule's Important Take Aways On April 7, 2017, just three days before the original set applicability date, the Department of Labor announced they will be postponing the applicability dates originally stated in the Fiduciary Rule from April 10, 2017 to...

Better Solutions for Today’s Retirement

With the introduction of 401(k) plans in 1980, the responsibility for retirement contributions shifted from the employer to the employee. Unfortunately, the employee had no way of gauging what those contributions should be, or how the contributions should be invested....

Defining a Standard of Care

In the context of retirement readiness, how do we identify the circumstances under which reasonable caution and prudence must be exercised? The standard of care stems from the 1837 case of Vaughn v Menlove. This case established that the standard of care is dependent...

Employee Investment Outcomes and the New Fiduciary Standard

When Section 401(k) became a permanent provision of the Internal Revenue Code in 1980, a seismic shift occurred in American workers’ preparation for retirement. The responsibility for contribution and investment decisions shifted from employers to employees. Before...

Employees & Short-Term Value

In today’s world of instant gratification, it’s no wonder that workers value short-term benefits the most. According to a worldwide study of more than 10,000 workers conducted by Mercer, a salary increase was preferred over all types of benefits. While saving for...

Corrective Distributions

The 401(k) plan has emerged as the most popular form of retirement plan in the United States. This trend will likely continue for some time for a number of reasons. One is the cost savings to employers, since deferral contributions are paid by employees. Another is...

Cash Balance Plans for Larger Tax-Deferred Contributions

A cash balance plan can supplement an existing 401(k) plan with substantially larger contributions and tax savings. There are two types of qualified retirement plans: defined contribution (DC) and defined benefit (DB). Currently, the maximum annual contribution to a...

Profit Sharing Plans: Best Ways to Use Them and Why

Profit Sharing Plans: Better Ways to Use Them and Why The term Profit Sharing Plan is somewhat misleading today. However, prior to 401(k) plans, profit sharing plans were an alternative to defined benefit plans. Originally designed as a way for companies to share...

Safe Harbor Plans: Costly When Poorly Designed

 Safe Harbor Plans: Costly When Poorly Designed A safe harbor provision simply means that you will not violate a statute or regulation as long as certain conditions are met. In other words a free pass for nondiscrimination testing for 401(k) plans. Traditional Safe...

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