Erin Sweeney commented on the U.S. Department of Labor's (DOL's) recently unveiled final fiduciary duty rule's impact on employers. The new rule should be good news for employers who want to provide education to plan participants, Sweeney said, adding that such education information could be made available to participants, which includes the referencing of specific investment options available under a plan and hypothetical asset allocation models. "An important takeaway for employers is they have to delve into those examples and the types of education that will be permitted so participants have access to providers who are willing to put that [education] together," Sweeney said.
The DOL's decision to allow employers and advisers more time to review the details of their agreements and iron out any adjustments that may need to be made showed the agency "heard loud and clear" that the investment community "may not be able to manage the eight-month track," Sweeney said. During the extended implementation period, employers should review their existing agreements with advisers and other plan service providers to make sure the language and terms of those pacts are in line with the new regulations and also to adequately prepare any amendments that may need to be made, she added.