Finance News & Insights

Feds look more closely at firms that handle employers’ 401(k)s

You and your peers aren’t the only ones who are under increased scrutiny when it comes to managing retirement plans.

The Department of Labor has ramped up its examinations of businesses that serve employers’ retirement plans – such as third-party administrators (TPAs), brokerage firms and registered investment advisers – over the past year.

What’s more, employment attorneys expect the scrutiny to increase when the new fee disclosure regs kick in this summer.

These exams are notable because, in the past, the DOL has only focused on plan sponsors — the companies that offer the retirement plans to workers — not TPAs and investment advisors.

The DOL exams are time-consuming and generally take several months to be completed. Some of the areas the agency has expressed concern over: whether service providers are receiving comp that isn’t disclosed to 401(k) plans or whether service providers are paid more for recommending specific investments.



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