Search Results for keywords:"Employee Retirement Income Security Act"

The U.S. Department of Labor has announced a proposed exemption allowing certain asset managers affiliated with the Royal Bank of Canada (RBC) to continue managing retirement plans, despite a conviction against RBC's Bahamas division for aiding tax fraud in France. The exemption, if granted, would last from March 2025 to March 2030, provided RBC meets specific protective conditions. The decision is driven by the need to avoid disruptions and additional costs for retirement plan clients, as well as to maintain fair investment practices. Public comments on this proposal are invited before March 2025.

The Department of Labor has issued a notice regarding a proposed exemption for certain prohibited transaction restrictions relating to Goldman Sachs. This exemption, if granted, would allow certain entities affiliated with Goldman Sachs to continue engaging in activities normally restricted by the Employee Retirement Income Security Act (ERISA), despite Goldman Sachs Malaysia's conviction under the Foreign Corrupt Practices Act. The exemption is proposed to last five years, and public comments are invited until February 10, 2021. The measures aim to protect affected plans and ensure compliance with specific conditions during the exemption period.

The Department of Labor is considering a proposed exemption that would allow certain asset management affiliates of Deutsche Bank to not be barred from relying on a specific existing exemption, despite a past criminal conviction of a Deutsche Bank subsidiary. This exemption will only apply if the companies meet several conditions, such as not employing any individuals involved in the criminal conduct and maintaining strict compliance policies. This exemption aims to prevent disruptions for retirement and investment plans that use these affiliates, as losing the ability to use the exemption could lead to significant costs and disruptions for these plans. Public comments are being solicited to assess the potential benefits and costs of granting this exemption.

The Department of Labor has updated the Voluntary Fiduciary Correction Program (VFC Program) to simplify the process of correcting fiduciary breaches under the Employee Retirement Income Security Act (ERISA). These updates add a self-correction feature for common plan issues like late participant contributions, streamline procedures for program participation, and incorporate changes from the SECURE 2.0 Act allowing self-correction for certain participant loan failures. The goal is to make the program more user-friendly for employers and other plan fiduciaries, encouraging compliance with the law and avoiding potential civil penalties.

The U.S. Department of Labor has announced an exemption allowing the United Brotherhood of Carpenters Pension Fund to sell a 19.25-acre property in Las Vegas to the United Brotherhood of Carpenters for cash. This decision was based on the finding that the sale to UBC would result in significantly higher net proceeds for the Pension Fund compared to selling the property to a third party. Following public input, the Department removed a proposed revenue-sharing condition but kept a "Clawback Condition" ensuring that if UBC resells the property within ten years for a profit, any excess proceeds must be given to the Pension Fund. The exemption ensures that the sale benefits the Pension Fund and its participants.

The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule to adjust the maximum civil penalties for inflation, as required by federal law. These adjustments, effective January 13, 2021, apply to penalties related to failure to provide certain required notices under the Employee Retirement Income Security Act (ERISA). The maximum penalty under ERISA section 4071 is now $2,259, and the maximum under section 4302 is $301. This change is part of an annual process to ensure penalties keep pace with inflation.

The Department of Labor (DOL) is inviting public comments on an information collection request related to the Delinquent Filer Voluntary Compliance Program, which is being reviewed for approval by the Office of Management and Budget (OMB). This program allows plan administrators to pay reduced penalties if they voluntarily comply with annual reporting requirements under the Employee Retirement Income Security Act of 1974 (ERISA). The DOL is seeking authorization for this information collection for three years, targeting businesses and not-for-profit institutions. Comments must be submitted by February 16, 2021.

The Department of Labor is considering a proposed exemption that would allow Northern Trust Corporation and its affiliates to continue using a special legal exemption for certain financial transactions despite Northern Trust Fiduciary Services (NTFS) being convicted of aiding and abetting tax fraud in France. The proposed exemption would be in effect for five years and aims to prevent disruptions for pension plans and other financial entities relying on Northern's services. This proposal includes various safety measures to ensure Northern's operations remain lawful and in compliance with fiduciary duties, also detailing costly procedures and conditions to protect involved parties and maintain trust.