We’ve previously written about the Department of Labor’s new fiduciary rule, which expands the definition of who is considered a fiduciary under the Employee Retirement Income Security Act, as amended (“ERISA”) and the Internal Revenue Code of 1986, and which addresses related prohibited transaction exemptions. The rule was finalized in April 2016 and is currently set to become applicable on April 10, 2017. The rule’s implementation, however, has been a specific focus of President Donald J. Trump and his administration. As discussed here, on February 3, 2017, President Trump issued a Presidential Memorandum ordering the DOL to examine the rule, requiring in particular an updated economic and legal analysis of the impact of the rule (though the Memorandum did not specifically call for a delay to the rule’s applicability date, as many had expected).

Today the DOL announced a proposed extension of the applicability date of the new fiduciary rule. The proposal will be published in the March 2, 2017, edition of the Federal Register. According to a DOL News Release, the stated purpose of the extension is to “give the department time to collect and consider information related to the issues raised in the Presidential Memorandum before the rule and exemptions become applicable.” The DOL has stated that, following the 60-day extension and examination, it may allow the rule to become applicable, propose a further extension, or propose to amend or withdraw the rule entirely. The comment period relating to the 60-day extension runs for 15 days following the publication of the proposal, while the comment period relating to the Trump-mandated examination of the rule runs for 45 days from the same date.

We will continue to monitor and keep you apprised about the future of the fiduciary rule and any related initiatives. Please contact your Jackson Lewis attorney to discuss these developments and your specific organizational needs.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Kellie M. Thomas Kellie M. Thomas

Kellie M. Thomas is co-leader of the firm’s Employee Benefits practice group. Her goal with every client is to provide practical and straightforward advice that breaks down and makes accessible the myriad issues and considerations arising under ERISA, the Internal Revenue Code (including…

Kellie M. Thomas is co-leader of the firm’s Employee Benefits practice group. Her goal with every client is to provide practical and straightforward advice that breaks down and makes accessible the myriad issues and considerations arising under ERISA, the Internal Revenue Code (including Sections 280G, 401(k), 403(b), 409A and 457(b) and (f)), the Affordable Care Act, COBRA, HIPAA, and the various other federal and state laws and regulations affecting benefit plans.

As part of her day to day advice and counsel work, Kellie regularly reviews, drafts and amends self- and fully-insured health and welfare plans; cafeteria plans; qualified and non-qualified retirement plans; employment, consulting, severance and change in control agreements; and stock option and other equity-based compensation plans. She drafts and prepares submissions under the Internal Revenue Service’s Employee Plans Compliance Resolution System and the Department of Labor’s Voluntary Fiduciary Correction Program, and reviews and qualifies proposed Qualified Domestic Relations Orders and Qualified Medical Child Support Orders. Kellie also counsels on corporate governance and fiduciary matters, including the structure and duties of retirement and benefit plan committees.

Kellie also has extensive experience advising on all benefits-related aspects of corporate transactions, from due diligence and transaction document negotiations to benefits integration following a closing. She particularly enjoys building relationships during the transaction process that continue after the deal is done.