(1) Section 404(c) of the Employee Retirement Income Security Act of 1974 (ERISA or the Act) provides that
if a pension plan that provides for individual accounts permits a participant or beneficiary to exercise control over assets in his account and that participant or beneficiary in fact exercises control over assets
…
What is a 404a retirement plan?
The 404a-5 notice
discloses certain plan expenses (administration, individual and investment-related) to 401k participants
. First required in 2012, its purpose is to help 401k participants make informed plan choices.
What is ERISA 404 A?
ERISA Section 404(a)(1)(A)
requires a fiduciary to discharge his/her duties solely in the interest of participants
and their beneficiaries for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan.
WHAT IS 404c compliance?
In a phrase, 404(c) is
designed to protect plan sponsors from employees’ poor investment choices
. … At the most basic level, to be 404(c) compliant, a DC plan must offer a broad range of investment options and make it possible for participants to easily view and control their investments.
What is a 404 a )( 5?
The Department of Labor’s (DOL’s) 404(a)(5)
fee transparency efforts
are designed to provide participants with at least an annual—and in some cases a quarterly—breakdown of the fees that they are directly incurring for plan administration, investment management, and advisor services, effective for plan years beginning …
What is a 404 a notice?
This is a
disclosure to update plan participants on any fees that have
recently been changed. No less than 30 (but not more than 90) days BEFORE any changes are due to take effect.
What is ERISA status?
The Employee Retirement Income Security Act of 1974 (ERISA) is a
federal law
that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
What is a 408 B 2 fee disclosure?
The intention behind 408(b)(2) is to
provide the plan fiduciary with a description of the services provided by the plan’s CSP
and fees charged for those services. As such, it imposes disclosure requirements for your CSPs and for you as a fiduciary.
What is a 401k participant fee disclosure?
The Department of Labor issued participant fee disclosure rules for participant-directed plans which first became effective in 2012. These fee disclosures are
designed to help participants understand how much they are paying for administration of their 401(k) plan
.
What is a participant fee?
Participant Fees means
fees, if any, payable by Participant to Upstream pursuant to Section 12
for use of the System Services. Sample 2. Participant Fees means the fees to be paid by a City Party to Participant for Participant’s services under this Agreement, as more fully explained in Section 7 of this Agreement.
What is a functional fiduciary?
By definition, a functional fiduciary is
any person or entity that exercises authority and management of a retirement or benefit plan
, or that has a responsibility to administer the plan.
What is a 401 m?
QNECs are
any employer contributions
, other than matching contributions, which are not subject to employee election, are fully vested when made to the plan, and are subject to the distribution restrictions that apply to elective contributions.
What is the role of a directed trustee?
Second is a directed trustee that is subject to the direction of a named fiduciary who is not a trustee (or an investment manager). A directed trustee has
fiduciary responsibility and liability for taking direction for the selection, monitoring, and replacement of plan assets
.
What is a 404a5 fee disclosure?
The disclosure should describe
the general plan administrative fees and expenses
and explain how they will be allocated on a plan-wide basis (i.e. ratably or per capita). Fees and expenses may include legal, accounting, recordkeeping or investment advisory fees.
What is the purpose of ERISA?
ERISA
protects the interests of employee benefit plan participants and their beneficiaries
. It requires plan sponsors to provide plan information to participants. It establishes standards of conduct for plan managers and other fiduciaries.
What plans are not covered by ERISA?
In general, ERISA does not cover group health plans established or maintained by governmental entities,
churches
for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment, or disability laws.
