Diversified Investment Advisors Releases White Paper on 403(b) Retirement Plan ERISA Compliance
PURCHASE, NY, December 15, 2009 -- Diversified Investment Advisors, Inc., a national investment advisory firm specializing in retirement plans, has released a white paper on 403(b) plan compliance with Employee Retirement Income Security Act (ERISA) statutes.
Avoiding the Breach: Bringing 403(b) Plans Up-to-Date with Current ERISA Fiduciary Best Practices was developed to help higher education plan sponsors understand when and how ERISA applies to 403(b) plans, as well as provide best practice recommendations for complying with fiduciary requirements. The white paper was co-authored by principals David W. Powell and Stephen M. Saxon of Groom Law Group. Diversified partnered with Groom Law Group to prepare the paper in light of the urgency surrounding compliance with the final 403(b) regulations and the pressing concern regarding the application of proper fiduciary practices.
"One of the most crucial considerations for a 403(b) plan sponsor is the exposure to ERISA," said David Ray, vice president and national practice leader, Diversified Investment Advisors. Diversified worked with Groom Law Group to develop a paper to help plan sponsors familiarize themselves with ERISA's fiduciary requirements, as well as how to mitigate special 403(b) problem areas. We understand the urgency for 403(b) plan sponsors, particularly higher education institutions, to meet these standards and felt that providing a comprehensive practicum to follow would help to facilitate their efforts to meet these rigorous requirements."
Avoiding the Breach provides information on the following:
- Background on 403(b) plans, ERISA and the Tax Code.
- A look at the current environment including new regulation changes and 5500 filing responsibilities beginning in 2009.
- Overview of ERISA fiduciary duties and the importance of avoiding prohibited transactions.
- Fiduciary best practices and formalizing plan governance processes.
- Outline of special 403(b) problem areas and how to mitigate them, including fee disclosure, money in contracts that cannot be moved, older contracts and their subjectivity to ERISA fiduciary duties and best fiduciary practices for non-ERISA plans.
"There is an urgency for 403(b) plan sponsors to comply with ERISA guidelines on fiduciary practices as the IRS and Department of Labor (DOL) continue to ramp up their audit and compliance efforts. Acting now might mitigate any DOL or IRS litigation for past violations as well as serve the best interests of the plan and its participants prospectively," said David Powell, Principal, Groom Law Group.
For a copy of Avoiding the Breach: Bringing 403(b) Plans Up-to-Date with Current ERISA Fiduciary Best Practices send an e-mail with your contact information to RetirementResearchCouncil@divinvest.com.
About Diversified Investment Advisors
Diversified Investment Advisors, Inc. is a national investment advisory firm specializing in retirement plans. The company's expertise covers the entire spectrum of defined benefit and defined contribution plans, including: 401k and 403(b) (Traditional and Roth); 457; nonqualified deferred compensation; profit sharing; money purchase; cash balance and Taft-Hartley plans; and rollover and Roth IRA. Providing comprehensive plan administration, investment and communication services for mid- to large-sized organizations, Diversified helps more than 1.5 million participants save and invest wisely for and throughout retirement. Headquartered in Purchase, NY, the company's regional offices are located in Arkansas, California, Illinois, Iowa, Louisiana, Maryland, Massachusetts, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Utah and Wisconsin. To learn more, visit www.divinvest.com or www.403bready.com
About Groom Law Group
The Groom Law Group has been at the forefront of developments in the nation's employee benefits laws since Congress passed ERISA in 1974, drawing many of its attorneys from the federal agencies that regulate employee benefits and forging strong ties with key players in all three branches of government. With nearly 60 attorneys dedicated to the employee benefits practice, Groom offers clients unparalleled coverage of issues and disputes arising from ERISA, the Tax Code, securities laws, HIPAA, COBRA, ADEA, and the many other laws that govern employee benefits. For more information, visit www.groom.com.
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