WASHINGTON (Legal Newsline) — The U.S. Department of Labor announced Nov. 27 that it will extend the special transition period for the fiduciary rule’s best interest contract exemption and the principal transactions exemption.
Judge Susan Richard Nelson for the U.S. District Court for the District of Minnesota, in her order last week, said an “actual, ongoing controversy” exists between plaintiff Thrivent Financial for Lutherans and the U.S. Department of Labor.
Cozen O’Connor PC attorney Jeremy Glenn, the current co-chair of the American Bar Association’s Federal Labor Standards Legislation committee, said he “wholeheartedly” agrees with the U.S. Department of Labor’s recent move to rescind its so-called “persuader rule.”
In June, the U.S. Department of Labor published a Request for Information, or RFI, related to the rule and whether to delay its full implementation. The rule, released in April 2016, mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the “best interest” of the savers and disclose conflicts of interest.
WASHINGTON (Legal Newsline) — The U.S. Department of Labor (DOL) announced Aug. 18 that its Employee Benefits Security Administration (EBSA) is soliciting nominations to fill five three-year vacancies on the Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council. The DOL noted that Aug. 31 is the deadline for nominations.
NEW YORK (Legal Newsline) — The U.S. Department of Labor announced Aug. 16 that the owner of a Manhattan laser surgery center will pay $5 million to its employee stock ownership plan (ESOP) after allegations of violating the Employee Retirement Income Security Act of 1974 (ERISA) by creating false company valuations.
The U.S. Department of Labor’s Office of Labor-Management Standards published its notice in June, explaining it intends to rescind the rule, first published by the DOL in March 2016. The rule, or Persuader Advice Exemption Rule, effectively eliminates the “advice exemption” under the Labor Management Reporting and Disclosure Act.
The U.S. Department of Labor and its new secretary, R. Alexander Acosta, last week notified a Minnesota federal court that it submitted to the Office of Management and Budget, or OMB, proposed amendments to three exemptions. The proposed amendments include an “extension of transition period and delay of applicability dates” from Jan. 1, 2018 to July 1, 2019.
NEW YORK (Legal Newsline) — The U.S. Department of Labor (DOL) announced July 25 that MagnaCare LLC will return at least $14.5 million to health benefit plans covered by the Employee Retirement Income Security Act (ERISA) after allegations of ERISA violations.
NEW ORLEANS (Legal Newsline) – The U.S. Department of Labor has filed notice with U.S. Court of Appeals for the Fifth Circuit, asserting that the government has presently “decided not to advocate” for a specific salary level in its ongoing dispute with states over what workers should be eligible for overtime pay.
JACKSONVILLE, Fla. (Legal Newsline) — The U.S. Department of Labor announced June 19 that the Secretary of Labor has filed a complaint against Andrea Lynn McCarthy, Lisa Hall, Truss Systems LLC and Truss Systems LLC Profit Sharing Plan.
CHICAGO (Legal Newsline) — The U.S. Department of Labor (DOL) announced May 25 that the partnership between its Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation has recovered close to $1.5 million for participants in two terminated Chicago-based pension plans.
Mercer Bullard, a University of Mississippi law professor and founder of Fund Democracy, a group that advocates for mutual fund shareholders, is puzzled by the U.S. Department of Labor’s 60-day delay, arguing the rule had one of the most thorough vettings.
Uday Singh, a partner in the financial institutions practice of A.T. Kearney, a global strategy and management consulting firm, argues the 60-day holdup already has proven somewhat beneficial, in that new information has emerged.
Last month, the U.S. Department of Labor released a measure officially delaying the implementation of the rule and its related exemptions by 60 days. The applicability date is now June 9. Some argue a longer delay is necessary, while others contend the U.S. Securities and Exchange Commission should step in and craft a better rule.