With the proposed changes to the fiduciary proposal ahead, what should plan sponsors be focusing their attention toward?
The Department of Labor’s proposed adjustment of the very definition of a fiduciary under the Employee Retirement Income Security Act (ERISA) will capture more services offered by IRA and 401(k) providers by altering the scope of those who become fiduciaries.
The American Retirement Association’s Chief of Communications, Nevin Adams, finds that many of the plan advisors and sponsors he communicates with could be divided into three categories: those who find the changes daunting, those who think the changes will be daunting but easily managed and those who are wholly unaware of the changes and the impact they could have.
Adams states that many sponsors fall into the third camp of thought, and recommends that they care about the reproposal for a multitude of reasons, including being prepared to make necessary changes to plan education materials and considering the potential that some advisors may not want or be able to assist participants with rollover decisions.
As no decision has been made yet, all of the potential issues Adams states are just likely scenarios. While the DOL is still working to address many of the concerns about the proposal, it is wise to think ahead and prepare for what could be a new outlook for retirement plans.
To read all of the advice Nevin Adams provides to plan advisors and sponsors on this issue, you can find the full article from NAPA Net here.