Benefits Blast

On April 3, 2024, the U.S. Department of Labor (Department) published its final amendment (the Final Amendment) to Prohibited Transaction Class Exemption 84-14 (the QPAM Exemption or Exemption). 

On April 25, 2024, the U.S. Department of Labor’s Employee Benefits Security Administration (the Department) published the Retirement Security Rule: Definition of an Investment Advice Fiduciary (the 2024 Fiduciary Rule). The 2024 Fiduciary Rule defines when a person is considered a fiduciary under Title I and Title II of the Employee Retirement Income Security Act of 1974 (ERISA) in connection with providing investment advice or making an investment recommendation to a retirement investor. In addition to the 2024 Fiduciary Rule, the Department also finalized amendments to certain Prohibited Transaction Exemptions (PTEs) to reflect the Department’s updated definition of an investment advice fiduciary.

On March 15, 2018, the Court of Appeals for the Fifth Circuit reversed a district court judgment and vacated the U.S. Department of Labor’s “Fiduciary Rule” in toto in a 2-1 split decision.

Every five years plan sponsors of individually designed retirement plans should (it is not an absolute requirement) submit applications for determination letters under the staggered system of five-year cycles (Cycles A–E) established by the IRS.  The purpose of this five-year program is for the IRS to review the plan for certain plan qualification requirements and ultimately get a "thumbs up” from the IRS as to the qualified status of the plan.