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7 responses to “5 Fiduciary Facts the DOL Wants Every 401k Plan Sponsor to Know”

  1. Jim Watkins

    Thanks Chris. Another excellent post. With pending DOL fiduciary announcement, sponsors need to understand that these core concepts are not going to go away, only get enforced more.

  2. Dale F. Smith

    Chris: thanks for the DOL article. I will add it to my voluminous file. I’ve also bought and studied your excellent treatise (“401(k) Fiduciary Solutions”), although I’ve not yet fully digested all of your many thoughts on THE subject. I do appreciate your comments on Bundled vs Unbundled. Our firm carries a categorization as a “non-producing TPA,” and we’ve lost a lot of clients to the Big Boys (we call them Predators) with their Bundled Bungle during the past couple of years. Their Takeover Teams are well-rehearsed. Like taking candy from a baby; we cannot possibly sit on the front porch of every client and dispell the mis-representations. 408(b)(2) is not yet creating that promised “level playing field.” The Prudent Process of service provider engagment and disengagement is not being practiced. It would appear that the Predators’ legal department has accepted the argument that they can make millions in takeover revenues, to more than offset any possible DOL fines or litigational decisions that may be decided way down the road.

  3. George W Walters

    Excellent summary. I would like to point out, according to our research, there isn’t recourse available against a TPA. We have encountered a few cases where the TPA provided an incorrect amortization schedule for a loan resulting in default. The answer in both cases was the sponsor signed off on the loan therefore the TPA has no liability. Meanwhile the sponsor has to enter the VCP at a minimum cost of $2500. With all the required disclosures and discussion about abuses no one has focused on the TPA. I suggest that may be the source of many problems. They should be regulated like everyone else

  4. BPP401k.com Newsletter 04.10.13 Benefit Plans Plus 401k

    […] Five Fiduciary Facts the DOL Wants Every 401k Plan Sponsor to Know Many of the actions needed to operate a 401k plan involve fiduciary decisions. This is true whether or not you hire someone to manage the plan for you or do some or all of the plan management yourself. Here are five fiduciary facts the DOL thinks every 401k plan sponsor to know. Source: Fiduciarynews.com […]

  5. 5 Things You Should Know About Fiduciary Responsibility | Retirement Flex & Cobra

    […] Click here to read the full article on Fiduciary Facts. […]

  6. 5 Fiduciary Facts the DOL Wants Every 401k Plan Sponsor to Know | 401(k) Expertise for the Fortune 5,000,000

    […] See on fiduciarynews.com […]

  7. Steve Patterson

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