On September 21, 2017, the ASPPA/ARA Government Affairs Committee filed comments with the American Institute of Certified Public Accountants with regard to their release of a Proposed Statement on Auditing Standards. The AICPA is considering modifying the auditing standards that related to employee benefit plans subject to ERISA. [Letter]
On September 13, 2017, the American Retirement Association filed comments with the Department of Labor with regard to a Notice of Proposed Rulemaking to extend the transition period with regard to certain provisions in the Best Interest Contract Exemption. The letter recommends using a “tiered” approach to determine the applicability date for the delayed provisions of the Best Interest Contract Exemption. Under this approach, the delayed guidance would become applicable as of the later of July 1, 2019, or a date that is at least 18 months from the date a revised exemption (or rule) is promulgated. [Letter]
On August 29, 2017, the American Retirement Association requested relief for taxpayers, plan sponsors and service providers adversely affected by Hurricane Harvey. [Letter]
On August 23, 2017, Brian Graff, CEO of the American Retirement Association, filed with the Nevada Securities Administrator, Ms. Diane Foley, a legal opinion rendered by the law firm of Trucker Huss. The legal opinion reviews application of ERISA’s preemption provisions to a recently enacted Nevada law. The new law imposes a state-based fiduciary standard on broker-dealers, broker-dealer sales representatives and most investment advisors licensed under state or federal law who meet the definition of “financial planner” under Nevada law. The opinion concludes that to the extent the new state law would apply to the services provided to an ERISA plan, the plan’s fiduciaries and/or the plan’s participants and beneficiaries, it would be preempted by ERISA. [Letter]
On July 18, 2017, the ARA Government Affairs Committee filed comments with the Department of Labor (DOL) with regard to a Request for Information with respect to the Definition of Fiduciary regulation and related prohibited transaction exemptions. In the letter, ARA recommended a further extension of the January 1, 2018, Applicability Date for certain provisions in the Best Interest Contract Exemption. The letter also recommended that the DOL consider a new streamlined “Levelized Fee” prohibited transaction exemption. [Letter]
On June 22, 2017, the ASPPA/ARA Government Affairs Committee submitted a comment letter to the Department of Labor requesting interpretative guidance with respect to the obligation of a covered service provider to disclose a change in the information required to be provided under ERISA Section 408(b)(2) as a result of the June 9, 2017, applicability date for the Fiduciary Rule and related prohibited transaction exemptions (collectively, the “Rule”). The ongoing review of the Rule by the DOL has caused a great deal of uncertainty among plan sponsors and providers. ARA recommends that the Department issue guidance acknowledging that the review of the Rule coupled with the potential for significant change constitute “extraordinary circumstances beyond the covered service provider’s control” which would qualify for relief under ERISA Regulation §2550.408b-2(c)(1)(v)(B)(1). Additional recommendations are also provided. [Comment Letter]
On June 20, 2017, the American Retirement Association filed a comment letter with recommendations on items to be included in the 2017-2018 IRS guidance plan. The letter was in response to IRS Notice 2017-28. [Letter]
On June 8, 2017, the ARA Government Affairs Committee filed comments with the IRS recommending additional guidance be provided with regard to mid-year amendments to safe harbor 401(k) and 403(b) plans. The letter was in response to a request for comments made by the IRS in IRS Notice 2016-16. [Letter]
On April 17, 2017, the American Retirement Association filed a letter with the Department of labor in response to a request for comment with respect to the Conflict of Interest Regulation and related exemptions. [Letter]
On March 15, 2017, the American Retirement Association Government Affairs Committee filed comments with the Department of Labor regarding a proposed regulation to extend the applicability date for the “Conflicted Advice’ regulation by 60 days. ARA GAC recommended extending the applicability date until January 1, 2018, to give the Department sufficient time to consider additional public comment with respect to its examination of the regulation pursuant to the President’s February 3, 2017 directive. [Letter]