DOL issues Interpretive Bulletin on distinguishing participant education from investment advice

Article Abstract:

The US Dept of Labor has released Interpretive Bulletin 96-1 to supplement earlier exposure drafts on the dividing line between permissible investment education efforts made available to benefit plan participants and actual investment advice which triggers fiduciary responsibilities. The Dept of Labor has identified four safe harbor forms of education that will not be considered offering investment advice. I.B. 96-1 provides disclaimers that should accompany some forms of communication and notes that endorsing a third party source of information could constitute investment advice.

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DOL announces exposure draft of bulletin on when providing investment information to participants in self-directed accounts is investment advice

Article Abstract:

The Dept of Labor has released an Interpretive Bulletin that details the type of information that may be provided to plan participants by plan administrators without the information being considered investment advice under the Investment Advisers Act of 1940. The exemption for such information is intended to improve the knowledge of employees in plans that offer control and discretion to employees. Permissible forms of information focus on general investment information, plan performance, asset allocation models and interactive materials.

Pension funds

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Supreme Court allows Lockheed to obtain participant ERISA and ADEA waivers in connection with early retirement benefits

Article Abstract:

The US Supreme Court held in Lockheed Corp. v. Spink that amending a retirement plan to offer increased benefits to employees retiring early was not a prohibited transaction because making plan amendments was not a fiduciary function. The court also held that the administrator's implementation of the amendments was not a fiduciary activity. The plaintiff had argued that the amendments were prohibited transactions because inducing retirees to sign litigation releases constituted the use of plan funds for the benefit of the employer.

Cases, Early retirement, Covenants not to sue

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