The difference between education and advice

Article Abstract:

The US Dept. of Labor will release a bulletin in 1995 designed to distinguish between educational and advisory services provided by pension plan sponsors. This interpretative bulletin is necessary because of the rise in the number of participant education programs as well as ambiguity in regulations covering participant-directed plans. A distinction between investment education and advice must be made because plan sponsors giving advice incur fiduciary responsibilities that put them in danger of violating the Employment Retirement Income Security Act of 1974.

Laws, regulations and rules, Fiduciary duties

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How to plan multi-cultural employee communications

Article Abstract:

Employee benefit managers' vulnerability to liabilities under Section 404(c) of ERISA has increased with the growing cultural diversity of employees. Section 404(c) mandates that benefit managers provide their clients with sufficient information about prospective investments. However, many benefit managers are finding it difficult to comply with the regulation, especially with the increased diversity of employees. One viable approach is to establish customized communications strategies that caters to the specific cultural backgrounds of employees.

Management, Multiculturalism

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Employer stock creates challenge as 401(k) option

Article Abstract:

Companies offering 401(k) plan investment options to employees promotes loyalty and encourages participation in the 401(k) plan. The administration and communication of the employer stock as an investment option will determine its success. Share accounting is more advantageous than unit accounting because the stock's value is easier to interpret and does away with liquidity problems. Communication about 401(k) plan's investment options must encourage employees to make long-term investments as well as realize the risks in stock investments.

Investments, Compensation and benefits, Employers, Workers

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