Satisfying ERISA's fiduciary responsibility requirements in the wake of potential plan changes

Article Abstract:

A fiduciary who is also a settlor of a pension trust must be careful of fulfilling disclosure responsibilities when deciding as a settlor to amend or terminate a plan. The disclosure responsibilities arise under ERISA. Fiduciaries are legally obligated under ERISA to answer any questions from employees on business decisions, and this includes plan changes. There may be a conflict between settlor and fiduciary functions if this obligation is expanded to an affirmative duty to tell participants of possible plan changes to avert a threat to their interests.

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12b-1 fees and retirement plan services: recent Labor Department pronouncements

Article Abstract:

Competition in the employee benefits industry has an important tool in 12b-1 fees, and two 1997 rulings of the Department of Labor clarify this ERISA section. The fiduciary requirements of ERISA have made the receipt of such fees problematic for some providers of pension services. The Department's advisory opinions do not answer whether a directed or nondiscretionary trustee is a fiduciary. This question was not possible before the trend in the shifting of risk, but alterations in the competitive environment now demand its answer.

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Administering participant loan programs: prime rate loans

Article Abstract:

Managers of employee benefit plans can offer loans from plans only if an exception to ERISA prohibition on loans applies. Plan managers must also set loan interest rates according to the Department of Labor (DOL) Regulation Section 2550.408(b)-1(e). The DOL regulation requires interest rates be set at the same rate as loans issued by banks under similar circumstances. The DOL requires reasonable rates and does not provide safe harbor for prime rate loans.

Employee loans

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