Compliance September 8, 2009

Summary Prospectus Users Still 404(c) Eligible

Plan sponsors got a bit of a roadmap from the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) about how to rely on a summary prospectus to meet the prospectus delivery component of safe-harbor provisions.

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An EBSA news release said Field Assistance Bulletin (FAB) 2009-03 describes how an individual account plan could stay under 404(c) protection from the Employee Retirement Income Security Act (ERISA) by giving out the new summary prospectus, as the Securities and Exchange Commission (SEC) requires. 

“The department believes that the delivery of a summary prospectus by an identified plan fiduciary or designee to participants and beneficiaries satisfies the requirements of the ERISA section 404(c) regulations because the required contents of the summary prospectus provide key information about a mutual fund that will assist participants and beneficiaries in making informed investment decisions,” EBSA said.

The Summary Prospectus is a short-form document providing a summary of key information about a mutual fund in order for participants and beneficiaries to evaluate and compare plan investment options (see “SEC To Require Mutual Fund Summaries“).




Deals & People September 8, 2009

Hewitt Combines Middle-Market Offerings

Hewitt has announced it will combine its mid-market health and welfare outsourcing platform, Core Benefits Administration (CBA), with its existing mid-market retirement solutions.

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Led by Craig Maloney, the expanded division will focus exclusively on the needs of companies in the middle-market segment, according to a press release. The company said the move will allow it to serve middle-market clients with greater focus and collaboration, supported by Hewitt’s broader human-resources outsourcing and consulting solutions.

“Integrating our CBA platform with our other mid-market retirement solutions and developing a new Web portal enables us to create a world-class customer experience,” said Jay Rising, Hewitt’s president of global benefits outsourcing. “Looking ahead for our refined mid-market offer, we’re well-positioned to more effectively serve middle-market companies in a way that is consistent with the leading human resources expertise we’re recognized for in the large market.”

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