Retirement Plan Consultants/ERISA Advisor to Fiduciaries
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Retirement Plan Consultants/ERISA Advisor to Fiduciaries |
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* * * The Department of Labor has finally released the final final (did I say "final"?) regulations under ERISA §408(b)(2) and simultaneously extended the effective date until July 1, 2012. Several changes from the proposed regulations should be noted:
Failure to comply with these regulations is at a minimum a prohibited transaction and exposes plan fiduciaries to liability for a breach of their obligations. A copy of the regulations can be found here. The DOL has also provide a "fact sheet" (available here) that provide some highlights of the regulations, and a list of changes (available here) that explains the changes from the proposed regulations. If you would like to discuss how these regulation may affect you, your plan, or your practice, do not hesitate to call. Are you ready for fee disclosure? Plan sponsors now need to be gearing up to interpret and act on the information they are going to be receiving and, probably more importantly, be prepared to educate participants and field questions from them when fee disclosure is effective with respect to them. Advisors can play a proactive role and cement their relationships by helping their clients through this process For more information on preparing for fee disclosure, give us a call and schedule a time to discuss what you need to know. * * * The DOL has issued it's final regulations on the provision of investment advice by providers and others under the Pension Protection Act of 2006 ("PPA"). The regulations clarify what is required in order to avoid the prohibited transaction inherent in providing advice to participants - when the advice giver may receive a benefit from the advice given (in the form of direct or indirect compensation from the investment funds). Advice given must be "revenue neutral" or must be given pursuant to a program using current, verifiable investment theories and strategies. The regulations can be found here. The DOL has announced that it will re-propose its revisions to the definition of a "fiduciary." While the Department has reiterated that it's intention to provide the broadest protection to plan sponsors, plan participants and other retirement savers (primarily through IRA's), there has been considerable chatter concerning the original proposed definition, and comments from a variety of sources, including several Congressman, indicating that the expanded definition would render it impossible for advisors to effectively serve the needs of their clients. The DOL's press release can be found here. The Department of Labor has extended the effective date for disclosure of plan fees to plan sponsors/fiduciaries under ERISA §408(b)(2) until April 1, 2012. The DOL has extended the effective date for disclosure of plan fees to participants until May 31, 2012. The DOL's announcement can be found here. We are currently looking for a handful of remaining participants who have balances in a plan about to be terminated. If you have received a letter or other communication from us identifying you as potentially one of those participants, please contact us as soon as possible to discuss your options. There is no cost to these participants for our services. Calamos Investments has published it's February 2011 Retirement Solutions newsletter featuring an article entitled: "Custom Target Date Portfolios: In Reach for Small to Mid-Sized 401(k) Plans," written by Michael J. Olah. The article dispels some of the myths used to create barriers to advisors fashioning customized target date funds for small and mid-sized clients. Don't hesitate to ask you Calamos representative for a copy, or give us a call to discuss the topic and issues. The DOL has announced it's intention to extend the initial compliance date for the regulations issued under ERISA §408(b)(2). The regulations, issued in "interim final form" on July 16, 2010 and to be effective one year later requires vendors and service providers to disclose, and plan fiduciaries to receive, certain information concerning the receipt of direct and indirect compensation or other fees. The new compliance date is expected to be Januray 1, 2012. The DOL's announcement is here. See below for links to the regs and the DOL's fact sheet. ERISA Fiduciary Training Course now available! One of the best defenses to the perils of litigation is to not put yourself in that position in the first place. Knowledge is key to performing your functions as a fiduciary properly. To that end, we provide training to fiduciaries so that they can 1) understand when they are performing as a fiduciary and when they are not; 2) what is really expected of them as a fiduciary; and 3) what steps to take as a fiduciary to ensure you're doing it right. A copy of the slides used in our training program are here. If you want the commentary and analysis that accompanies the slides, give us a call at (330) 961-2082 or send us an email at info@erisa-expert.com. The Investment Company Institute (ICI) has put together a discussion of the The Economics of 401(k) Plans. A PDF is available here. The Wall Street Journal published an article on using collective trusts in 401(k) plans. The article can be found here. The Department of Labor has (finally) issued regulations under ERISA §408(b)(2). Our Email Alert of the regs is here. The text of the regs can be found here. and the DOL's Fact Sheet is here.
Our MissionTo provide world class services to clients of all sizes effectively, efficiently, responsively and responsibly to assist them in achieving their corporate retirement plan goals, keeping in mind that our efforts will impact the retirement success of their plan participants. Our approach is to first, understand the unique nature of a client's situation, then identify specific, measurable goals for actions, and only then, to provide a range of solutions to achieve those goals at minimal cost (and effort on the part of the client). We discuss these solutions with our client using "plain language" and make the solutions relevant to their business. We strive to maximize a client's return on each benefit dollar spent.
Company ProfileMichael J. Olah & Associates, LLC. is a virtual network of retirement plan professionals who can provide diagnostic, design, operational, and fiduciary consulting services to plan sponsors, their advisers, plan service providers, and other professionals. We utilize the talents of some of the industries most experienced players when needed, maintaining an ultra-low cost structure to efficiently address the most complex issues facing our clients. We focus on providing "holistic" solutions that address root causes, rather than treating symptoms. We start with a top-down analysis, helping clients identify global objectives for maintaining a retirement plan, and then build bottom-up solutions designed to accomplish those goals. Our approach includes providing plan sponsors with a decision making paradigm that makes future decisions simpler to make, and in many cases, self-evident. This best practices approach reduces the need for on-going corrective actions, eliminates inconsistencies, and best protects plan fiduciaries from liability. Our Managing Principal, Michael J. Olah, is a 27 year industry veteran, having experience as a practicing lawyer, in-house counsel, and member of the senior management at several bundled and un-bundled retirement plan service providers. His "inside insight" makes him uniquely qualified to not only discuss the highly technical legal requirements of ERISA and the Internal Revenue Code, but to also discuss what actually works in the real world. His consultative approach relies on his diverse background and varied experience to first explore the significant issues and client motivations in-depth, and then to proffer appropriate alternatives for consideration. His philosophy is the every client deserves solutions that uniquely addresses their specific situation, and strives to identify a practical approach that resolves the issue with the minimal amount of distraction from the client's primary role - that of managing their business. He has successfully taught his in-depth approach to numerous client-facing professionals, is a frequent conference speaker on fiduciary process and decision making, and is a subject matter resource to many in the industry. Our network includes plan consultants, investment professionals, participant level marketing experts, operational experts, attorneys and other compliance specialists. By using only the right resource at the right time, we maintain an efficiency that maximizes clients' benefits dollars while still providing a broad range of necessary services.
Contact InformationFeel free to contact us by phone, email or fax, and receive a personal reply as soon as possible. We welcome new challenges!
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Copyright © 2011
Michael J. Olah & Associates, LLC
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