DALLAS, Texas – The finally final 408(b)(2) regulation was on the minds of advisers at the 2012 CPI Retirement Academy held this week in Dallas, Texas. In Monday’s general session, Bradford Campbell, former Department of Labor assistant secretary for employee benefits (EBSA) discussed changes to the final 408(b)(2) regulation in his presentation “At Least 2012 Won’t Be Boring: Advisor’s Guide to ERISA’s Shifting Sands.”
Campbell urged advisers to communicate with their plan clients regarding the disclosures well in advance of the July 1 deadline. “Plan fiduciaries can face the same prohibited transaction excise tax as service providers if the disclosures aren’t properly made,” said Campbell. “They can avoid liability for uncorrected errors only by reporting noncompliant service providers to DOL, and by terminating these relationships.” As new rules can lead to differing interpretations of what is required, Campbell counseled that “communication is key to avoiding misunderstandings that can lead to serious problems later on.” Campbell also noted that the final regulation clarified a number of lingering issues, such as the threshold for 408(b)(2) reporting. “Some service providers mistakenly believe if they do not receive $1,000 in fees each year, the disclosure requirement does not apply to them. In the final rule, the $1,000 trigger is based on total fees anticipated calculated over the life of the contract.”
Campbell joined a field of more than twenty retirement industry thought leaders, speaking on a comprehensive array of topics at the second annual CPI Retirement Academy. More than 200 retirement advisers who have made qualified and nonqualified retirement plans the focus of their practice were in attendance. “We are beyond fees and expenses now,” commented Edward Chairvolotti of LPL Financial. “The content of this conference gives advisers what we need to take the next steps with our plan sponsor clients and their retirement plan participants.”
Paul Powell of 401k Advisors echoed Chairvolotti’s comment and added, “At this point the onus is on advisers to interface with their plan sponsor clients regarding their 408(b)(2) responsibilities — and prepare them for the upcoming participant disclosure.”
Academy sessions included legislative and fiduciary issues, plan design, retirement income, stable value solutions, sales strategies, and market outlook, along with an advisory panel discussion and networking opportunities. Kevin Thompson, president and chief executive officer of CPI, commented, “We’re pleased with every aspect of this year’s Retirement Academy. We’ve received excellent feedback, and of course, there is always room for improvement, so next week we’ll begin planning a bigger and better conference for 2013.”
Since 1972 CPI Qualified Plan Consultants Inc. has provided recordkeeping and administration services for qualified and non-qualified retirement plans, partnering with the nation’s most prominent investment institutions and mutual fund companies. With corporate headquarters in Great Bend, CPI has 20 offices located throughout the United States. CPI and its parent company, CUNA Mutual Group, currently provide services to more than 8,000 retirement plan clients and their financial advisers.
For more information about CPI, visit www.cpiqpc.com® or call 800-491-7859. CPI is a member of CUNA Mutual Group based in Madison, Wis.