By: Financial Advisor Tim Hayes - posted in: Employers - Last updated Sep 11, 2019

Retirement Plan Sponsors the DOL Makes Plan’s More Transparent

by | Last updated Sep 11, 2019 | Employers

Retirement plan sponsors it’s time to reconnect with financial advisors and participants as the DOL followed through on its promise to make retirement plans more transparent with three new rules in 4 years.

#1: “Covered” Service Providers (CSP) Must Describe to the Plan Their Services & Fees

This includes financial advisors, consultants, or third-party administrators who expect to receive $1,000 or more in direct or indirect compensation.

Cambridge Investment Research’s DOL Response

#2: Plan Sponsors Must Disclose to Participants:

  • rules about investment instructions
  • fees and expenses paid from their accounts
  • a breakdown of these fees
  • other account charges
  • a plan participant or beneficiary may claim a violation if not provided.


#3: The Department of Labor (DOL) Expanded the Definition of an ERISA Fiduciary

A group of nearly 30 Congressional Democrats has protested this expanded definition in a letter to Labor Secretary Hilda Solis, contending that it would backfire and eventually reduce access to investment education and information for plan participants.

The concern is that the definition of “fiduciary” will become so vague that even the most basic education and advice could fall under ERISA status.

The goal? The DOL wants to make these plans more transparent. This is an occasion for plan advisors to reconnect with plan sponsors, fiduciaries, and participants.

The roadmap for retirement plans is changing. Because of these new regulations, you will have new responsibilities. More will be required from you – and there is much to understand in a relatively short window of time.

At times like these, having a trusted independent advisor is invaluable. I can step forward to help you manage the new rules and responsibilities, all with the service, care, and courtesy you have come to expect.

Read more: Pension Consultant

These are the opinions of Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only, and should not be construed or acted upon as individualized investment advice. 

About Financial Advisor Tim Hayes

Tim Hayes AIF®, CRPS®, AWMA®, CFS®, APMA®

Registered with Cambridge Investment Research, Inc., a broker-dealer with over 3,000 Registered Representatives nationwide. Investment Adviser Representative at Cambridge Investment Research Advisors, Inc., a $94B RIA based in Fairfield, IA. I've held an industry securities registration for 26 years and am subject to SEC and FINRA oversight.

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