White Paper Helps 403(b) Sponsors with Fiduciary Roles

Diversified Investment Advisors, Inc., has released a white paper about 403(b) plan compliance with statutes of the Employee Retirement Income Security Act (ERISA).

“Avoiding the Breach: Bringing 403(b) Plans Up-to-Date with Current ERISA Fiduciary Best Practices” was developed to help higher education plan sponsors understand when and how ERISA applies to 403(b) plans, as well as provide best practice recommendations for complying with fiduciary requirements, according to a press release.

The white paper provides:

  • a background about 403(b) plans, ERISA, and the tax code;
  • a look at the current environment including new regulation changes and Form 5500 filing responsibilities beginning in 2009;
  • an overview of ERISA fiduciary duties and the importance of avoiding prohibited transactions;
  • fiduciary best practices and formalizing plan governance processes; and
  • an outline of special 403(b) problem areas and how to mitigate them, including fee disclosure, money in contracts that cannot be moved, older contracts and their subjectivity to ERISA fiduciary duties and best fiduciary practices for non-ERISA plans.

Diversified partnered with Groom Law Group to prepare the paper, co-authored by principals David W. Powell and Stephen M. Saxon.

A copy of the white paper can be obtained by sending an e-mail with contact information to RetirementResearchCouncil@divinvest.com.