Plan Fiduciaries Get an Assist from the DOL

Kevin Hogan • March 13, 2014

Since 2012, covered service providers (“CSPs”) such as recordkeepers and investment advisors have had to provide annual service and fee disclosures to plan fiduciaries under Section 408(b)(2) of ERISA.  Plan fiduciaries cannot remain idle after receiving these disclosures —  review of the disclosures is a fiduciary duty.  The Department of Labor (“DOL”) requires fiduciaries to review the disclosures to make sure that the services provided are appropriate and the fees charged are reasonable.  If the disclosures are not complete, the fiduciaries have an affirmative obligation to request the missing information from the CSP or report the CSP to the DOL if the information is not provided upon request.  The problem for fiduciaries is that these disclosures are often very hard to understand.

CSPs can provide these disclosures in any form that they think satisfies the requirements under Section 408(b)(2).  There is no template or model disclosure.  The disclosures often refer to other documents to provide the information making it confusing and burdensome for the fiduciaries to review. The DOL has attempted to remedy this problem by issuing a proposed rule that would require CSPs to give fiduciaries a guide along with the disclosures if the disclosures are contained in multiple of lengthy documents.  The guide will contain specific locators to find the required information.  For example, if the service description is found in another document, the guide will be required to provide a specific page number or section identifier.  If this proposed rule becomes final, it may provide welcome relief to fiduciaries who have been struggling to review these disclosures.

For more information on the proposed rule click here.

Employee burnout: what it is and how to prevent it

By Mardy Gould • May 24, 2024
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1 While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health. Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.

Form 720 and PCORI fee FAQs

By Mardy Gould • May 23, 2024
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization? Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness. Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
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