PLANSPONSOR Weekend Newsdash
Week ending May 13th, 2016
NOTE FROM THE EDITOR
Happy Friday, PLANADVISER readers! There has been no shortage of predictions published regarding the likely impact of the DOL’s final fiduciary rule—with positive and negative opinions coming down from all sides of the issue. Many still expect small-balance savers to be harmed by a stricter fiduciary standard, while others see a healthy dose of industry disruption leading to better service for all. Below you’ll find the opinions of top ERISA attorneys and industry execs on various sources of regulatory disruption. 
Editor's choice
Final Fiduciary Rule Still Favors Level-Fee Work
Experienced ERISA attorneys and business development executives at Ascensus tell PLANADVISER the DOL’s final fiduciary rule still inherently favors flat-fee service arrangements for qualified plan clients and “an open architecture future for accessing retirement plan investments.” Read more >
Expanding Coverage
The campaign to expand access to retirement savings in the workplace at the federal government level “continues to get little more than lip service” from political leaders, argues Marcia Wagner, an ERISA attorney working on a variety of employee benefits and executive compensation issues. And so, more than half of the states are taking some action to fill the coverage gap. Read more >
Fiduciary Breaches by Others
Fred Reish and Joan Neri are two nationally recognized ERISA attorneys with Dirnker, Biddle & Reath. Writing in the latest PLANADVISER print edition, the pair warn that “even if you think you are not a fiduciary under the new DOL rulemaking, there still is new risk and liability.” Read more >
Clarifying the Scope and Value of Fiduciary Services
Before becoming founder and CEO of Unified Trust Co. in Lexington, Kentucky, Gregory Kasten was an M.D. in anesthesiology. When looking for retirement advice, Kasten “found a lot of smart people and advisers to talk to, and some of them had some powerful ideas, but most were ultimately trying to sell me a specific product or bring me back to a particular fund family.” Read more >
Fiduciary Rule Shows Washington Compromise Can Still Happen
Count Russell Investments directors Jean-David Larson and Sam Ushio among the financial services industry professionals who were grateful to see the Department of Labor (DOL) dial back some elements of its new fiduciary standard. Read more >
MOST POPULAR STORIES
Tax Bill Passed By Senate Backs Off 457(b), 403(b) Plan Changes

It appears some last-minute amendments have largely removed controversial provisions from the Senate’s version of tax reform legislation that would have had a big impact on governmental 457 and nonprofit 403(b) plan sponsors.

Pass-Through Tax Reform Impact on Small Businesses May Be Mitigated via Roth

The American Retirement Association says that tax reform could be a disincentive for small businesses to offer retirement plans; however, as one reader shares, there are counter considerations having to do with Roth 401(k) options that could mitigate some of the concern.

Settlement Ends Fujitsu Lawsuit Filed Over Plan Fees, Custom TDFs

In their lawsuit, the plaintiffs called the Fujitsu plan one of the most expensive in the country and specifically called out the design and implementation of the plan’s custom target-date funds.

Lawsuit Filed in Colorado District Court Shows Great-West Targeted by Fraud

The richly detailed text of the complaint shows multiple individuals are accused of defrauding Great-West and depositing ill-gotten assets in a variety of U.S. banks, resulting in fraud and money laundering charges. 

DOL Rule Provides Tailwind for Adoption of Outsourced Fiduciary Services

For the $5 million to $500 million DC plan market, advisers and consultants offering 3(38) discretionary investment advice are more common.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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