Fred Reish Speaks to NAPA and ASPPA About DOL Fiduciary Guidance

In “Court Rolls Back Rollover Rule in 401(k) Fiduciary FAQ Fight,” the National Association of Plan Advisors (NAPA) and American Society of Pension Professionals and Actuaries (ASPPA) turned to benefits and executive compensation partner Fred Reish for his commentary on a suit against the Department of Labor’s (DOL) fiduciary guidance involving rollovers.

“While the DOL won on the question of whether the procedure outlined in FAQ 15 was appropriate, they lost on the bigger issue of the re-interpretation of the fiduciary rule for rollovers,” noted Reish. “If an adviser or agent isn’t a fiduciary, then a rollover recommendation won’t be a prohibited transaction, and PTE 2020-02 and the FAQ 15 process won’t be needed.”

Reish added that he believes the decision will be appealed, and the final outcome will not be known for at least a year. As a result, “it would be risky to rely on the opinion until there is a final decision at a higher level than this trial court,” he explained.