Pub. 1 2011 Issue 3

11 Q retirement plan — continued on page 12 In light of upcoming ERISA disclosure rule changes, I thought it would be beneficial in this quarter’s “By the Numbers” column to reprint, with permission from Plante & Moran’s Universal Advisor, the article below, addressing both the top- ics of fiduciary status and the recent ERISA rule changes. I t’s not unusual for people to be unaware of their fiduciary status. The confusion comes in that there are basically two distinct types of fiduciary: named fiduciaries (whereby the fiduciary’s name is listed within the retirement plan documents, removing any trace of mystery) and functional fiduciaries. A functional fiduciary is defined by the Employment Retirement Income Security Act (ERISA) as one who (1) exercises discretionary authority or control with respect to the management of an employee benefit plan and its assets, (2) renders or has authority or responsibility to render investment advice for a fee, or (3) has discretionary authority or responsibility in the administration of an employee benefit plan. If you meet any of these three criteria, then you’re probably a fiduciary and, consequently, charged with prudently overseeing your organization’s retirement plans in the best interest of its participants and beneficiaries. In addition to fulfilling this responsibility, the Department of Labor (DOL) recently issued fee dis- closure requirements that may prove challenging to organizations that aren’t prepared: • According to ERISA 408(b)(2), service providers that receive more than $1,000 in compensation in connection with their services must provide fee disclosures to plan sponsors effective January 1, 2012. BY THE NUMBERS BY JAMES EAGAN CPA, PARTNER AND AUTOMOTIVE CONSULTANT, PLANTE & MORAN PLLC Attention Retirement Plan Fiduciaries: Fee Disclosure Requirements Are Just Around the Corner It’s important that dealers and/or dealership entities recognize that they may have certain fi duciary responsibilities with respect to their organization’s retirement plan(s).