WORKSITE Direct™
Financial Education with a Purpose
The Department of Labor regulations under ERISA Section 404(c) provide that sponsors of defined contribution plans which allow participants to control their investments have the option of eliminating their liability for losses on these investments.
Sponsors may qualify under Section 404(c) by meeting certain requirements. Many of these requirements may already be met by the retirement plans currently offering a variety of mutual fund investment options.
Whether your plan satisfies the requirements imposed by the regulations under ERISA Section 404(c) is a matter to be considered by each employer and their legal counsel.
The Department of Labor released an Interpretative Bulletin in June 1996 encouraging employers to provide defined contribution pension plan participants with valuable investment education. This bulletin stated that certain types of investment education would not constitute "investment advice". Specifically, this education would not sacrifice the protection of ERISA 404(c).
According to the bulletin, sponsors may choose to provide information in the form of workshops or additional explanatory materials which may include:
- Plan Information
- General Financial and Investment Information
- Asset Allocation Models
- Interactive Investment Materials
If you would be interested in providing this type of education to your employees through an educational workshop, let us know. Our workshop can provide the critical information participants need to make intelligent investments decisions. At the same time, you will be providing a valuable employee benefit.
For more information please contact: Julia Martinez