Aon Washington Report
August 14, 2017
Retirement
DOL Publishes Second Set of FAQs on Transition Period Fiduciary Rule Guidance
In early August, the Employee Benefits Security Administration of the Department of Labor (DOL) issued its second set of conflict of interest frequently asked questions (FAQs) related to transition period fiduciary rule relief and guidance for financial advisors, retirement plan sponsors, and individual workers and retirees. The DOL released the first set of FAQs and corresponding Field Assistance Bulletin (No. 2017-02) in May 2017.
On April 7, 2017, the DOL announced that the applicability dates in its fiduciary investment advice rule and related prohibited transaction exemptions would be delayed from April 10, 2017, to June 9, 2017, with certain provisions in the exemptions further delayed to January 1, 2018. As a result, on June 9, 2017, investment advice providers to retirement savers became fiduciaries, and the “impartial conduct standards” became requirements of the exemptions. Other exemption conditions that were scheduled to become applicable on April 10, 2017, were delayed to January 1, 2018, while the DOL conducts its ongoing examination of the fiduciary investment advice rule as directed by the president. On August 9, 2017, the DOL filed a notice in connection with an ongoing litigation advising of its intent to propose to extend the January 1, 2018 applicability date to July 1, 2019, which will permit additional time for examination of the rule.
The second set of FAQs discusses:
- Fiduciary rule and 408b-2 service provider disclosure regulations;
- Treatment of recommendations to contribute to a plan or IRA under the fiduciary investment advice rule; and
- Treatment of recommendations on increasing plan participation and contribution rates under the fiduciary investment advice rule.
The newest Conflict of Interest FAQs (Transition Period – Set 2, August 2017) are available here.
The Conflict of Interest FAQs (Transition Period – Set 1, May 2017) are available here.
Field Assistance Bulletin No. 2017-02 is available here.
Aon Publications
Now Available: Retirement Legal Consulting and Compliance Quarterly Update
The Aon Retirement Legal Consulting & Compliance practice is pleased to present its Quarterly Update of recent legal developments and consulting opportunities for the third quarter of 2017. In this issue you will find the following articles:
- Pension Liability Settlements—Positioning for Success
- New Opportunity for Defined Benefit Plan Sponsors to Lower Costs
- No Fiduciary Duty to Choose “Cheapest” Investment Fund
- New Guidance on Calculating Permissible Loan Amounts
- What’s Next in the IRS Approval Process for Pre-Approved Plans?
- Misleading Cash Balance Conversion Disclosure Punished
- Helpful Supreme Court Decision on Church Plan Status
- More Guidance Issued Relating to New Fiduciary Rules
- Important Changes to Remedial Amendment Period
- Quarterly Roundup of Other Developments
- Recent Publications
The third quarter 2017 issue of the Retirement Legal Consulting & Compliance Quarterly Update is available here.
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