09 Nov 2021
Making Wise Use of an ERISA Plan Investment Committee
Plan sponsors have a fiduciary obligation to prudently select and manage the investment options they offer participants in a retirement plan, and the obligation is under special scrutiny by participants in a plan with participant-directed investments. Plan sponsors often establish an investment committee that is responsible not only for selecting, but also monitoring, plan investment options, on a periodic basis, to be sure they continue to be prudent. Review the best practices you, as counsel, can take in establishing or reviewing the activities of an ERISA plan investment committee. As you’ll be reminded—documentation is key.
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DOL provides further transition relief relating to prohibited transaction exemption 2020-02 (see 85 Fed. Reg. 82,798 (Dec. 18, 2020)), which permits certain arrangements involving investment advice fiduciaries that adhere to impartial conduct standards when providing advice to ERISA retirement plans and participants, including advice on IRA rollovers. DOL Field Assistance Bulletin 2021-02. - Health and Welfare Plans
IRS issues guidance regarding COBRA election and premium payment extended deadline rules under coronavirus relief (see 85 Fed. Reg. 26,351 (May 4, 2020) and EBSA Disaster Relief Notices 2020-01 and 2021-01) and providing special transition relief rule that establishes November 1, 2021, as the earliest date an applicable premium payment may become due. I.R.S. Notice 2021-58.
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