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DOL is pursuing fewer cases but much bigger payouts
Last year, the Department of Labor closed less than a third of the number of cases it did in 2014, but total recoveries were six times higher.
June 1, 2021 2 MINS
DOL investigations are resulting in the biggest 401(k) recoveries the agency has ever seen, even as the number of cases it closes has been declining.
The agency has been pursuing bigger investigations, part of an initiative started in 2013 to go after plan violations that affect a larger number of participants. The recent numbers suggest that the effort is paying off.
That is according to an analysis published late last week by the Government Accountability Office, which examined enforcement activities for employer-sponsored retirement and health plans by Department of Labor in fiscal 2020 compared with other years in its recent history.
DOL arms investors with rollover questions that could catch some advisers off guard
The timing of those questions, such as are you a fiduciary? is not great for advisers relying on the DOL’s temporary enforcement policy until Dec. 20, the compliance deadline for the new rules, one lawyer said.
April 20, 2021 3 MINS
The DOL issued guidance last week about the fiduciary implications of rollover recommendations – but a set of questions it published the same day for account holders could create problems for some advisers.
The regulator last Tuesday published a set of answers to frequently asked questions about part of the Trump-era fiduciary rule, the prohibited transaction exemption dubbed Improving Investment Advice for Workers & Retirees. The guidance clarified that a recommendation to roll funds from an employer-sponsored retirement plan to an individual retirement account can represent the beginning of an ongoing fiduciary relationship between an ad
DOL tells 401(k) sponsors how to find ‘missing’ participants
That guidance comes years after it was requested by industry groups. The Department of Labor regularly investigates employers for the issue of missing participants, but until now it hadn t provided clear steps on how to remedy the problem.
January 13, 2021 3 MINS
The DOL on Tuesday told retirement plan sponsors how to avoid getting in hot water over plan participants they’ve lost track of, including guidance on how employers should try to locate such “missing” participants.
That guidance comes years after it was requested by industry groups. The Department of Labor regularly investigates employers for the issue of missing participants, but until now it hadn’t provided clear steps on how to remedy the problem.
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