Help for Retirement Plan Sponsors Struggling with New Fiduciary Issues
April 17, 2008 (Des Moines, Iowa) — Being a retirement plan fiduciary was never easy. In light of complex new rules from the Pension Protection Act, though, it's harder than ever.
The Principal Financial Group® is helping with an updated, easy-to-use fiduciary handbook that—in plain language—will help plan sponsors and their financial professionals feel more confident in their duties.
"The Fiduciary Handbook - A Guide to Plan Sponsor and Plan Fiduciary Responsibilities" now includes the latest changes to retirement plan rules from the Pension Protection Act of 2006. Fred Reish, a nationally known ERISA attorney, has endorsed the guide.
"Offering and managing a retirement plan does not need to involve liability or government penalties. The materials from The Principal can help fiduciaries enjoy the successes of a qualified retirement plan—and avoid the legal pitfalls," said Reish, a partner and managing director of the law firm of Reish Luftman Reicher & Cohen.
Easy-to-Use Package of Tools
The updated handbook is part of a package of tools to help plan sponsors understand and manage their fiduciary responsibilities effectively. The package also includes an annual fiduciary file folder for plan sponsors to store all important plan materials in one convenient location. It also includes sample notices, as well as steps plan sponsors can take to document their important decisions. Reish has also reviewed and endorsed these other fiduciary tool kit materials.
"These resources are part of our long-standing commitment to help plan sponsors understand their fiduciary duties. They spell out—in simple terms—the role of a fiduciary. And they walk fiduciaries through a step-by-step process for fulfilling that role," said Dennis Long, vice president, The Principal®.
Clients of The Principal can use the materials to:
- Better understand their fiduciary responsibilities under ERISA and the Pension Protection Act
- Document the steps they take to satisfy their obligations, which is a critical component of their fiduciary duties
- Find answers to challenging questions, such as:
- Should we add an automatic enrollment feature to our plan?
- How do the new investment safe harbor rules impact our plan?
- Get additional help from The Principal in understanding and meeting their fiduciary duties
About the Principal Financial Group
The Principal Financial Group® (The Principal®)1 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune® 500, the Principal Financial Group has $311.1 billion in assets under management2 and serves some 18.6 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
1) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group
2) As of December 31, 2007
©2008 Principal Financial Services, Inc. Insurance issued by Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, 800-547-7754, member SIPC. Bank Products offered through Principal Bank®, member FDIC, Equal Housing Lender. Principal Life, Princor® and Principal Bank are members of the Principal Financial Group, Des Moines IA 50392.
Insurance and securities are not insured by the FDIC; are not obligations or deposits of Principal Bank nor guaranteed by Principal Bank; and are subject to investment risks, including possible loss of the principal invested.
