Regulatory Update: Department of Labor Proposes Sweeping New “Fiduciary” Definition

Reprinted with permission from Employee Benefit Plan Review, February 2011.

On October 22, 2010, the Department of Labor (the DOL) proposed a revision of 35-year-old regulations defining “fiduciary” for purposes of the Employee Retirement Income Security Act (ERISA) and Section 4975 of the Internal Revenue Code. Although the regulations are currently only in proposed form, they are garnering significant attention from both plan sponsors and plan service providers due to the potentially sweeping changes proposed.