Products January 16, 2018

SPARK Publishes RFP Guide Update for Advisers and Clients

Researchers conducted a survey that enabled SPARK to better determine how the RFP Guide is used by advisers and providers today, leading to the new update.

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The SPARK Institute, a non-profit organization lobbying for the interests of the retirement services industry and its clients, released a new version of its “RFP Guide for Selecting Defined Contribution Service Providers.” 

According to Tim Rouse, executive director of The SPARK Institute, his organization developed the guide to assist advisers, consultants and plan sponsors alike. Using the guide, these professionals can streamline and professionalize the important task of preparing and evaluating requests for proposal (RFPs) for 401(k) and other defined contribution retirement plans.

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SPARK originally issued an RFP Guide in 1997, published a major update in 2014, and has made minor changes to it each year. This new edition, Rouse says, “represents significant updates to incorporate the latest industry regulations, products, services and technologies and the addition of The SPARK Institute’s Cyber Security Best Practice Standards.”

“SPARK also wants to acknowledge the efforts of Cynthia Hayes and Matthew Smith of Oculus Partners for their time and dedication in the making of this document,” Rouse notes. The pair conducted a survey that enabled SPARK to better determine how the RFP Guide is used by advisers and providers today, and incorporate key changes to make the Guide easier to use, and reflective of the tremendous growth in the scope of products and services offered as part of DC plan support today.

The new SPARK Institute Request for Proposal Guide is available at no cost to SPARK member firms and for $100 to all other organizations.  Copies may be ordered by contacting SPARK at 860-658-5058.

Compliance January 12, 2018

DOL Sues Retirement Plan Fiduciaries for Misusing Plan Assets

A federal district court judge entered a judgment requiring Michael Lewis, former president of Acme Orthotics and Prosthetic Laboratories Inc., to restore $128,535.75 in losses owed to the company’s Profit Sharing 401(k) Plan and Trust.

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Following a U.S. Department of Labor (DOL) investigation, the U.S. District Court for the Northern District of Illinois entered a judgment requiring Michael Lewis, former president of Acme Orthotics and Prosthetic Laboratories Inc., to restore $128,535.75 in losses owed to the company’s Profit Sharing 401(k) Plan and Trust.

As fiduciaries, Lewis and co-defendant Monica Fox failed to remit $58,531.72 in employee salary deferral contributions and loan repayment contributions, including lost opportunity costs, to the plan from July 2010, through April 2012. In addition, Lewis liquidated $70,004.03 in plan assets, including lost opportunity costs, from April 2012, to March 2015, and used the funds for non-plan purposes.

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Headquartered in Chicago, Acme Orthotic and Prosthetic Laboratories Inc., sponsored the plan and closed it in February 2015. Lewis was Acme’s president and sole owner; Fox was Acme’s executive director responsible for the company’s payroll.

The judgment permanently enjoins Lewis and Fox from acting as fiduciaries or service providers to employee benefit plans subject to the Employment Retirement Income Security Act (ERISA).

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