Important Links
Links to other websites or important resources.
Final Regs Of Participant Directed Accounts
The Final Regulations Regarding Participant Directed Individual Account Plans (ERISA Section 404(c) Plans) is an absolute "must read" for a Plan Fiduciary and its consultant.
All such Rules and Regulations of all Federal Agencies are disseminated through publication in the Federal Register. The DOL's 404(c) Regulations was published in 1992. Unfortunately, Internet access to the Federal Register includes only issues published in 1994 and after. However, a copy of this Rule can be secured from a Federal Depository Library.
To locate the nearest Federal Depository Library in your area, link to:
http://www.gpoaccess.gov/libraries.html
When requesting a copy, request 57 Federal Register, page 46906, published on 10/13/1992.
Bulletin96-1: Participant Investment Education
Most investment education is not construed as "investment advice."
29 CFR 2509.96-1 - Interpretive bulletin relating to participant investment education.
This interpretive bulletin, issued in 1996, identifies the various types of investment education that can be provided to a plan participant or beneficiary without the provider being construed as having given investment advice.
To see a copy of this Bulletin, click on the following link:
http://www.nwcapital.com/content/extra/IB%2096-1.pdf.
Final Rules on Electronic Communications
A must-read if you wish to communicate in this fashion
With Internet access becoming more and more common, the ability to deliver required Plan information becomes a more attractive option. The Department of Labor has set forth Safe Harbor guidelines to take advantage of the costs savings of electronic delivery. However, not all workplaces can meet the conditions of the Safe Harbor . Or perhaps, electronic delivery can suffice for some participants, but not the entire work force. Electronic delivery to participants and beneficiaries at home is also possible, but the requirements are complicated.
Click here to view the DOL's Final Rules Relating to Use of Electronic Communications and Recordkeeping Technologies by Employee Pension and Welfare Benefit Plans; Final Rule.
DOL's Bulletin on Mutual Fund Profiles
Most commentaries overstate the value of this
Can you send a "profile" in lieu of a "full" prospectus? Yes, but the lessening of the administrative burden this Advisory Opinion provides is suspect.
To see a copy of this Advisory Option, click on the following link:
http://www.dol.gov/ebsa/regs/aos/ao2003-11a.html
ERISA Fiduciary Answer Book
An indispensable and comprehensive resource
The ERISA Fiduciary Answer Book , written by David R. Levin JD and Tess Ferrara JD and now in its Fourth Edition, is published by Panel Publishers, a Division of Aspen Publishers. Contact information for obtaining this invaluable guide is:
1-800-638-8437 customer order center
1-301-644-3550 fax orders
1185 Avenue of the Americas
New York , NY 10036
Note: IRS Ruling 2004-10 specifically approves only a pro rata allocation of plan expenses to former employees' accounts. The ruling fails to address a per capita method of allocating expenses. If a Fiduciary chooses to use a per capita method of allocating expenses based on this ruling, the plan will have the burden of demonstrating to the IRS that the method is both reasonable and nondiscriminatory.