The Prudence Standard: Affiliated Products and Services

Size: px
Start display at page:

Download "The Prudence Standard: Affiliated Products and Services"

Transcription

1 The Prudence Standard: Affiliated Products and Services A WHITE PAPER by C. Frederick Reish, Esq Bruce L. Ashton, Esq. Summer Conley, Esq. June Century Park East Suite 1400 Los Angeles, CA (310) (310) [fax] Fred.Reish@dbr.com; Bruce.Ashton@dbr.com; Summer.Conley@dbr.com LA01/

2 TABLE OF CONTENTS Page INTRODUCTION... 1 EXECUTIVE SUMMARY... 3 ANALYSIS AND DISCUSSION... 6 ERISA Fiduciary Duties... 6 Duty to Prudently Select Investment Funds... 6 Duty to Select Investment Funds Prudently Prudently Selecting Investment Alternatives Includes a Cost and Benefit Analysis Prohibited Transaction Rule Prohibited Transaction Rules Conflicts of Interest Conflicts of Interest State Fiduciary Rules State Law CONCLUSION... 1 ENDNOTES... 2 EXHIBIT... 4 LA01/ i

3 INTRODUCTION THE PRUDENCE STANDARD: AFFILIATED PRODUCTS AND SERVICES Fiduciaries of participant-directed plans subject to the Employee Retirement Income Security Act of 1974 (ERISA), as well as governmental plans subject to similar state law fiduciary rules, must act prudently when selecting and monitoring the plan s investment alternatives. In light of the significant increase in the number of class action lawsuits over plan investments and expenses in the last few years, fiduciaries are under tremendous pressure when it comes to selecting investments prudently from a cost as well as a performance perspective. Many plan providers offer recordkeeping and other administrative services as well as investment funds managed through an affiliate of the provider (referred to as affiliated funds ). If a plan using the provider s recordkeeping services also offers affiliated funds as investment alternatives under the plan, the provider receives compensation from two sources, the recordkeeping fees and the asset management fees paid out of the affiliated funds. Often, the combination of these fees is sufficient to permit the provider to offset some of its recordkeeping fees by a portion (or all) of the investment management fees. In such cases, the plan may realize a significant cost savings that can be passed on to plan participants. Despite the discount and without considering the affiliated funds performance and other qualifications, some plan fiduciaries prohibit explicitly or implicitly investment in affiliated funds. This prohibition may be added as part of the recordkeeping agreement, may be reflected in the plan s investment policy statement, or may just be a general refusal by the plan fiduciary to consider affiliated funds. The prohibitions regarding affiliated funds are especially prevalent in governmental plans. Notwithstanding these prohibitions, the affiliated funds may compare favorably to the alternative funds from a performance perspective as well as from a cost standpoint. LA01/

4 Without considering the affiliated funds, fiduciaries do not know how the affiliated funds rate relative to other investment alternatives within the same asset class and fail to take into account the potential cost savings for their participants (and the resulting increase in ultimate benefits). This White Paper analyzes why offering one or more affiliated funds is not a prohibited conflict of interest or transaction and discusses the way in which the fiduciary rules under ERISA and similar state laws apply to the fiduciary decision to offer such funds. This White Paper also identifies the issues and factors that fiduciaries should consider when evaluating affiliated products and services. Contrary to conventional wisdom, the greatest risk to fiduciaries may be the failure to consider the affiliated investments and their value to the participants. LA01/

5 EXECUTIVE SUMMARY Under the Employee Retirement Income Security Act of 1974 (ERISA), the fiduciaries responsible for selecting the investment alternatives for a participant-directed plan must make such selections prudently and in accordance with the duty of loyalty and the exclusive purpose requirements. Many states impose similar fiduciary rules on governmental plans. Essentially, this means that fiduciaries of participant-directed plans, whether subject to ERISA or state fiduciary requirements, must prudently select the plan s investment alternatives. In order to properly carry out this duty, fiduciaries must engage in a prudent process, considering all the relevant facts and circumstances and then make an informed decision. Many recordkeepers for participant-directed plans are affiliated with an investment manager for mutual funds, collective trusts, separate accounts or other types of investments (which we collectively call affiliated funds ). These affiliated funds generate additional income (in the form of asset management fees) to the recordkeeper s controlled group. As a result, these recordkeepers may offer affiliated funds to participant-directed plans with some discount in the fees that would otherwise be charged by the recordkeeper. Some fiduciaries may be concerned that offering an affiliated fund is a prohibited transaction or presents a conflict of interest. Under ERISA section 406(a), a prohibited transaction occurs if a fiduciary causes the plan to enter into a transaction with a party in interest. However, such a transaction is exempt if the transaction is for plan services (e.g., investment management services) and the service provider receives reasonable compensation. Thus, as long as the recordkeeper and affiliated fund meet the reasonable compensation requirements, offering an affiliated fund will not violate ERISA section 406(a). Under ERISA section 406(b), a fiduciary engages in a prohibited transaction if the fiduciary uses plan assets for his own benefit or receives compensation from a third party LA01/

6 in a transaction involving plan assets. This means that a fiduciary is generally prohibited from using the authority, control or responsibility that makes him a fiduciary to cause himself or a party related to the fiduciary to receive additional compensation. However, if neither the party responsible for selecting the affiliated fund nor a party related to that fiduciary will receive any compensation as a result of the selection, there would not be a prohibited transaction. If a conflict of interest exists with respect to a service provider and an affiliated fund, this conflict can be managed through disclosures to the fiduciary and consideration by the fiduciary. As explained by the preamble to the regulation under ERISA section 408(b)(2), providing information to plan fiduciaries regarding potential conflicts of interest gives them the opportunity to determine whether the fees are reasonable and what, if any, impact the potential conflict will have. Managing such potential conflicts similarly addresses state fiduciary concerns. Under both ERISA and most states fiduciary requirements, fiduciaries must act prudently when selecting plan investment options. In order to prudently select the investment alternatives to be offered by the plan, the fiduciaries must engage in a thorough process and make an informed decision. This means that fiduciaries must consider and compare multiple funds within an asset class before selecting the particular fund to be offered by the plan. If a recordkeeper offers discounted fees to a plan that includes one or more affiliated funds in the plan s investment fund line-up, offering affiliated funds reduces participant expenses. Additionally, offering affiliated funds may provide other benefits to participants such as guaranteed minimum withdrawal benefits or added investment education services. The fact that offering one or more affiliated funds as plan investment options may lead the plan s recordkeeper to discount its fees or offer additional services is a relevant fact that must be considered by fiduciaries. While cost is just one factor to consider with respect to investment alternatives, it is an important one. LA01/

7 At least one court has found a fiduciary breach when the fiduciaries neglected to consider the inclusion of a less expensive share class of an investment fund in the plan s fund lineup. 1 In essence, the court concluded that it was imprudent not to consider the low cost alternative. 2 Thus, when considering different investment alternatives within a given asset class, it would be prudent for fiduciaries to review affiliated funds and compare their performance, risk versus return characteristics, cost and other factors to other possible funds within the asset class. By considering the affiliated fund (and any added benefits or reduced recordkeeping fees resulting from offering the fund) when making their investment selections, the fiduciaries are reviewing the relevant facts and circumstances, as required by the prudence standard. LA01/

8 ANALYSIS AND DISCUSSION In analyzing whether affiliated funds should be considered as possible investment options under a retirement plan (whether subject to the Employee Retirement Income Security Act of 1974 (ERISA) or to the state law fiduciary standards that govern state and local retirement plans), we first discuss the fiduciary duty and prohibited transaction rules under ERISA. In order to address concerns of governmental plan fiduciaries (who are not subject to ERISA), we follow our ERISA discussion with a look at state law fiduciary rules. We address ERISA standards first because state fiduciary law is generally not well developed and states often follow ERISA fiduciary rules. Because of this, state courts are likely to look to ERISA for guidance on how to interpret the fiduciary duties of governmental plan fiduciaries. ERISA Fiduciary Duties Duty to Prudently Select Investment Funds ERISA requires that the fiduciaries of an employee benefit plan act in accordance with the duty of loyalty and the exclusive purpose requirement. 3 Specifically, ERISA describes these requirements as follows: [A] fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries and: (A) for the exclusive purpose of- (i) beneficiaries; and providing benefits to participants and their (ii) defraying reasonable expenses of administering the plan. 4 [Emphasis added.] Further, these duties must be exercised: With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like LA01/

9 capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. 5 This standard of care is referred to as the prudent man rule or prudent expert rule, due to the requirement that fiduciaries carry out their duties as a prudent man who is familiar with such matters. 6 The prudence requirement has generally been described as requiring procedural diligence or a prudent process. 7 Both the Department of Labor (the DOL ) and courts have focused on fiduciaries engaging in a process that will generally lead to informed and reasoned decisions. 8 This means fiduciaries must gather and analyze all relevant facts and circumstances to make a prudent decision. In Advisory Opinions 97-15A and 97-16A, the DOL makes it clear that the plan fiduciary has a legal obligation to reach informed decisions. Investment fiduciaries of participant-directed plans, such as most 401(k) and ERISA-governed 403(b) plans, are responsible for selecting and monitoring the plan s investment alternatives. When exercising such investment function, fiduciaries must do so in accordance with their fiduciary duties and the prudent man rule. 9 The Department of Labor (DOL) has explained the prudent man rule as related to investment selection in regulations under Section 404(a). This Regulation provides: With regard to an investment or investment course of action taken by a fiduciary of an employee benefit plan pursuant to his investment duties, the requirements of section 404(a)(1)(B) of the Act are satisfied if the fiduciary (A) has given appropriate consideration to those facts and circumstances that the fiduciary knows or should know are relevant to the particular investment or investment course of action involved, including the role the investment or investment course of action plays in that portion of the plan s investment portfolio with respect to which the fiduciary has investment duties; and (B) has acted accordingly. 10 (Emphasis added.) LA01/

10 The point of this Regulation (and other guidance issued by the DOL) is that fiduciaries must be diligent in gathering relevant data and analyzing it thoroughly and objectively for the purpose of making informed decisions that are in the best interest of the plan, its participants and beneficiaries. Courts have made it clear that results, including investment results, are not the key for measuring fiduciary conduct; rather, the process for considering and examining relevant information is the key. As one court explained: ERISA 404(a)(1)(B) requires only that [fiduciaries] vigorously and independently investigate the wisdom of a contemplated investment; it matters not that the investment succeeds or fails, as long as the investigation is intensive and scrupulous and... discharged with the greatest degree of care that could be expected under all the circumstances by reasonable beneficiaries and participants of the plan. 11 Thus, to meet the prudent process requirement, fiduciaries must thoroughly investigate the investment options to obtain relevant information and then base their decisions on the information obtained. This means considering competing funds to determine which fund should be included in the plan s investment line-up. As explained by the DOL in the preamble to the qualified default investment alternative regulations, [a] fiduciary must engage in an objective, thorough, and analytical process that involves consideration of the quality of competing providers and investment products, as appropriate. 12 (Emphasis added.) In satisfying these duties, fiduciaries should consider a variety of funds and the expenses associated with the possible funds. 13 To determine whether the fiduciary has met the prudence standard, the court focuses not only on the merits of the transaction, but also on the thoroughness of the investigation into the merits of the transaction. 14 One recent case is especially relevant. In Tibble v. Edison International, the court considered whether the investment committee breached its fiduciary duties when it LA01/

11 failed to consider the less expensive institutional share class of a particular fund in addition to the more expensive retail share class. 15 The court found that the failure to at least consider the institutional share class represented a breach of fiduciary duty and further noted that, when all else is equal, a prudent person would select the cheaper share class. 16 This concept, that the cost of a fund must be considered in addition to the fund s rate of return, is also supported by the Eighth Circuit s decision in Braden v. Wal-Mart Stores, Inc. 17 (In Braden, plan fiduciaries offered retail share classes, with significantly higher fees than institutional share classes without considering the institutional share class as an option.) Thus, these cases suggest that if, like an institutional share class, the affiliated funds will result in lower fees for the participants, they should at least be considered as part of the prudent process of reviewing and selecting investment options. In addition to prudently selecting and monitoring investment alternatives, the fiduciaries must meet the exclusive purpose rule. 18 This means fiduciaries must determine how an investment alternative being considered for inclusion in a plan compares to other investment alternatives available to the plan. 19 According to the DOL: Other facts and circumstances relevant to an investment would, in the view of the Department, include consideration of the expected return on alternative investments with similar risks available to the plan. It follows that, because every investment necessarily causes a plan to forego other investment opportunities, an investment will not be prudent if it would be expected to provide a plan with a lower rate of return than available alternative investments with commensurate degrees of risk or is riskier than alternative available investments with commensurate rates of return. 20 In order to determine if a specific fund is appropriate, the fiduciaries must look at more than one fund. Thus, fiduciaries should consider multiple investment alternatives LA01/

12 in an asset class and assess whether they are comparable in terms of risk and return. If a fiduciary only considers one possible fund within a given asset class when selecting the plan s investment alternatives, there is no way to know how that fund compares in terms of performance and cost to other possible funds within the asset class. It is only by considering multiple possibilities within an asset class that a fiduciary can properly evaluate which investment alternatives to offer. As part of analyzing possible investment funds, fiduciaries should then compare various features of the funds, such as past performance, cost, risk level, and investment philosophies. 21 No one factor is dispositive, but comparing funds gives the fiduciary a sense of the reasonable range of cost versus performance, etc. For example, if a recordkeeper informs the fiduciary that there will be a reduction in recordkeeping or investment management fees for any affiliated funds selected, that could represent a cost savings to participants and a factor in the analysis and should at least be considered by the fiduciaries. For example, consider the following factual description from Department of Labor Advisory Opinion A of trust company (AATSC) that provided discounted fees based on how many affiliated funds the plan offered: You represent that a Client Plan s choice of investment vehicles affects the cost of engaging AATSC to provide Plan Services. AATSC estimates the amounts that a potential Client Plan would likely invest in Affiliated funds based on the amount of the Client Plan s assets and the number of Affiliated funds selected. This estimate affects the price at which AATSC offers to perform Plan Services. For example, if Client Plan fiduciaries may direct investment into three Affiliated funds, Plan Services would cost less than if Client Plan fiduciaries may direct investment into two Affiliated funds. Similarly, Client Plan fiduciaries that may direct investment into only one Affiliated fund would be quoted a higher price for bundled services, because AATSC would expect to cover less of the cost of providing Plan Services from asset management revenue. 22 LA01/

13 The DOL then favorably concluded that the arrangement was not a prohibited transaction. Even with a recordkeeping discount, affiliated funds may or may not be the best choice for a plan. However, when engaging in the process of selecting funds, it is prudent to at least consider alternatives that may provide the participants with cost savings. 23 LA01/

14 Analysis Duty to Select Investment Funds Prudently The prudent selection of investment options requires a focus on the process of considering funds and making a decision based on all of the relevant data. When selecting a fund for a given asset class, this means considering multiple options and comparing different funds within the class, in order to select one that is appropriate for the plan. No one expects fiduciaries to consider every fund within an asset class; there are more than 7,500 mutual funds in the United States. 24 But considering multiple options is inherent to a prudent process. 25 The DOL specifically refers to comparing competing investment products in the preamble to the qualified default investment alternative (QDIA) regulations, indicating that multiple investment funds need to be considered. It is only by considering multiple options, including affiliated funds, that fiduciaries can properly assess and determine which fund is appropriate to offer in the plan s fund line-up. Analysis Prudently Selecting Investment Alternatives Includes a Cost and Benefit When an affiliated fund that is competitive within a particular asset class will result in cost savings to the plan and its participants, the fund should at least be considered with other possible options. 26 This is supported by the Tibble and Braden cases. 27 In Tibble, fiduciaries were charged with investigating lower-cost institutional share classes of funds over retail share classes. 28 Essentially, the Tibble case imposes on fiduciaries a duty to ask i.e., a duty to check if there is a better, more cost-efficient option for the plan. The focus of satisfying the prudence standard when selecting investments is on the fiduciaries going through a thorough process to review and consider the relevant facts LA01/

15 and circumstances in order to make a reasoned decision. As explained by the court in Tibble, as part of exercising their fiduciary duties, investment fiduciaries should at least investigate and consider options that might cost less. 29 If an affiliated fund will result in cost savings to the participants but does not otherwise meet the investment committee s criteria for selecting a fund, it may not be an appropriate selection. However, investment fiduciaries will not know this unless they at least consider the affiliated fund. In that review, they may find that the affiliated fund is not only one of the better choices based on their selection criteria but may also offer cost savings to the participants. They may also discover that the affiliated funds have other benefits. For example, if an affiliated fund is selected, the plan may be able to offer lifetime income options, such as a guaranteed minimum withdrawal benefit. Additionally, if affiliated funds are offered, the recordkeeper may be able to provide additional investment education services. It comes down to the duty to thoroughly investigate the possibilities and then make a reasoned decision based on all of the relevant facts. Prohibited Transaction Rules Aside from selecting and monitoring investment alternatives in a prudent fashion, fiduciaries must also avoid engaging in any prohibited transactions. Under ERISA and the Internal Revenue Code (the Code ), a fiduciary is generally prohibited from (1) causing the plan to engage in a transaction with a party in interest and (2) self-dealing or engaging in certain conflicts of interest. 30 While ERISA section 406(a) generally prohibits a fiduciary from causing the plan to engage in a transaction with its service providers (and hence an affiliated fund), ERISA section 408(b)(2) provides an exemption for services necessary for the establishment or operation of the plan, if no more than reasonable compensation is paid therefore. Thus, as long as the fees charged by the recordkeeper and the affiliated fund are reasonable, offering an affiliated fund will not violate the prohibited transaction provisions of ERISA section 406(a). LA01/

16 ERISA section 406(b)(1) prohibits a fiduciary from dealing with plan assets in his own interest or for his own account essentially prohibiting a fiduciary from using plan assets to receive additional fees. 31 ERISA section 406(b)(3) prohibits a fiduciary from using the authority, control or responsibility that makes him a fiduciary to cause himself to receive compensation from third parties. 32 In ERISA Regulation Section b-2(e)(1), the DOL explained these prohibitions as follows: These prohibitions are imposed upon fiduciaries to deter them from exercising the authority, control, or responsibility which makes such persons fiduciaries when they have interests which may conflict with the interests of the plans for which they act. In such cases, the fiduciaries have interests in the transactions which may affect the exercise of their best judgment as fiduciaries. Thus, a fiduciary may not use the authority, control, or responsibility which makes such a person a fiduciary to cause a plan to pay an additional fee to such fiduciary (or to a person in which such fiduciary has an interest which may affect the exercise of such fiduciary s best judgment as a fiduciary) to provide a service. Nor may a fiduciary use such authority, control, or responsibility to cause a plan to enter into a transaction involving plan assets whereby such fiduciary (or a person in which such fiduciary has an interest which may affect the exercise of such fiduciary s best judgment as a fiduciary) will receive consideration from a third party in connection with such transaction. 33 [Emphasis added.] Thus, a fiduciary cannot use plan assets for its own benefit. In the context of selecting an affiliated fund, the questions become (1) who is selecting the affiliated fund and (2) who will benefit from such selection. The DOL addressed this issue in Advisory Opinion A. Specifically, the DOL considered whether a trust company could receive 12b-1 and sub-transfer fees from mutual funds managed by the trust company s affiliate for services to plans holding the mutual funds. Under the facts of the opinion, the plan fiduciary responsible for selecting the mutual funds was independent of the trust LA01/

17 company and its affiliates. As part of its bundled service arrangement, the trust company required that a plan s investment fiduciary select at least one affiliated fund as an investment alternative but did not specify which affiliated fund. The more affiliated funds offered by the plan, the lower the service fee charged by the trust company. As part of the DOL s analysis regarding whether the trust company s receipt of 12b-1 and sub-transfer agency fees from affiliated funds violated the self-dealing prohibited transaction provisions of ERISA sections 406(b)(1) and (b)(3), the DOL noted that the trust company was a party-in-interest and a fiduciary. However, the trust company was not a fiduciary with respect to selecting the investment options, including any affiliated funds. As a result, the DOL determined that there is no violation of section 406(b)(1) or 406(b)(3) of ERISA when the decision to invest in such funds is made by a fiduciary who is independent of [the trust company] and its affiliates, or by participants of such employee benefit plans. 34 In order for there to be a violation of ERISA section 406(b)(1) or (3) a fiduciary must receive a personal benefit as a result of the fiduciary s decision with respect to plan assets. Prohibited Transaction Rules Analysis First, a transaction with a party in interest is exempt from the ERISA section 406(a) prohibitions if the arrangement is for necessary services and is for reasonable compensation. Pursuant to regulations issued by the DOL, this reasonable compensation requirement is addressed through disclosures. 35 Thus, if the proper disclosures are made by the recordkeeper and affiliated fund and the compensation is reasonable, offering an affiliated fund does not violate ERISA section 406(a). Second, a self-dealing prohibited transaction occurs if a fiduciary uses plan assets in his own interest or causes a plan to enter into a transaction for the benefit of the fiduciary. However, if the party receiving a benefit is not the fiduciary responsible for entering into the transaction, there is no prohibited transaction. As explained above, according to the DOL in Advisory Opinion A, while the trust company (or its LA01/

18 affiliate) benefited from the plan s investment in the trust company s affiliated fund, there was no breach of the prohibited transaction rules because the trust company was not responsible for selecting the affiliated fund. On the flip side, when the plan fiduciary responsible for selecting funds chooses a fund that is affiliated with the plan s recordkeeper, but neither the fiduciary nor any affiliate of the fiduciary benefits from such selection, there is no prohibited transaction under ERISA section 406(b). If the recordkeeper will discount recordkeeping fees that would otherwise be charged to the plan (and hence participants) when one or more affiliated funds are selected, the plan and the participants (but not the plan fiduciaries) benefit from selecting an affiliated fund; as a result, there is no violation of ERISA section 406(b). Thus, as long as neither the recordkeeper nor any of its affiliates is responsible for the decision to offer an affiliated fund in a plan s investment fund line-up (i.e., is not a fiduciary), the recordkeeper does not engage in a prohibited transaction under ERISA section 406(b)(1) or 406(b)(3). Similarly, if the fiduciary responsible for selecting the affiliated fund will not receive any compensation or other benefit as a result of selecting the affiliated fund, the fiduciary does not engage in a prohibited transaction under ERISA section 406(b)(1) or 406(b)(3). Conflicts of Interest Even if there is no prohibited transaction, fiduciaries have a duty to consider and manage any conflicts of interest. 36 One purpose of the disclosure requirements under DOL Regulation section b-2(c), is to provide fiduciaries with information necessary to assess... potential conflicts of interest that might affect the quality of the provided services. 37 If a conflict of interest exists in connection with a proposed transaction, entering into the transaction may or may not trigger a breach of fiduciary duty. Whether there is a breach will depend on whether the fiduciary prudently evaluates the conflict, any effect on the plan, and the steps that can be taken to prevent the conflict from having an adverse impact on the plan and participants. LA01/

19 The duty with respect to conflicts of interest is to understand and determine if the conflict presents a problem for the plan. According to the DOL, the disclosures required by DOL Regulation section b-2(c) are intended to enable plan fiduciaries to assess actual or potential conflicts of interest that may impact the quality of services provided to the plan. 38 Thus, if the fiduciaries understand the relationship between the recordkeeper and affiliated fund and the related compensation and services, the fiduciaries can assess a potential conflict to determine whether the investment is still appropriate. Analysis Conflicts of Interest With respect to affiliated funds, any potential conflict resulting from the recordkeeper receiving a benefit if plan assets are invested in affiliated funds can be managed. For example, as described in Advisory Opinion A, disclosures regarding the affiliated funds may be an effective means of managing a potential conflict. By understanding and evaluating the potential conflict, fiduciaries can still offer affiliated funds, so long as the affiliated investments satisfy the plan s investment criteria. The disclosures required under the new ERISA 408(b)(2) regulation will help fiduciaries understand and evaluate any potential conflict. 39 The new regulation, which will become effective April 1, 2012 requires that compensation paid amongst related parties be disclosed if transaction-based or charged against the plan s investments. 40 This means plan fiduciaries will have information regarding the fees received in connection with the affiliated funds to assist in a proper evaluation of the reasonableness of compensation. In addition, the regulation will require disclosures of certain payments among related parties within a bundled provider. Those disclosures apply to transactional payments and to payments that are charged against plan investments (for example, the investment advisory fees paid by mutual funds to an affiliated investment management company). The Department of Labor has concluded that those disclosures are important to plan fiduciaries in evaluating conflicts of interest. Equipped with that information, plan fiduciaries will be able to understand the internal relationships (within LA01/

20 the bundle) and to evaluate whether the arrangement is reasonable. State Fiduciary Rules Governmental plans are not subject to ERISA. 41 Nonetheless most states have adopted fiduciary rules that apply to governmental plan fiduciaries, some of which are similar to ERISA. At least 31 states have adopted fiduciary standards that are derived from ERISA s prudent man standard, 15 of which have adopted the ERISA prudence standard verbatim. 42 (Excerpts from the relevant fiduciary statutes for these states are set out in Exhibit A, attached hereto.) For example, California s fiduciary requirements are almost identical to ERISA. They are found in the California Constitution (Article XVI, Section 17) and the California Government Code. For example, the California Government Code provides that the legislative body of a local agency may establish a pension trust and that the assets: shall be held for the exclusive purposes of providing benefits to participants in the pension or retirement system and their beneficiaries and defraying reasonable expenses of administering the system. The legislative body, trust, or other body authorized to make investments for a pension trust, shall discharge its duties with respect to investing the assets of the pension trust (a) Solely in the interest of, and for the exclusive purposes of providing benefits to, participants and their beneficiaries, minimizing employer contributions thereto, and defraying reasonable expense of administering the trust. (b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of alike character and with like aims. 43 [Emphasis added.] LA01/

21 Additionally, the Uniform Management of Public Employees Retirement Systems Acts tracks the ERISA fiduciary duty language as well. At least two states have adopted the uniform rules. 44 Further, while the prudent man rule has long since been considered an ERISA requirement, it has a much longer history as part of general trust law. The prudent investor rule [described in the Restatement of Trusts] is an extension and clarification of the traditional, so-called prudent man rule originally articulated by the Massachusetts Supreme Judicial Court and now followed by most states. 45 Further, some state courts have looked to ERISA for guidance in applying fiduciary duties to ERISA-exempt government and church plans. 46 In Board of Trustees of Employees Retirement System of City of Baltimore v. Mayor and City Council of Baltimore, the court noted that the City of Baltimore adopted the ERISA prudence standard and subsequently used guidance on the ERISA standard to formulate their holding. 47 Additionally, in the Idaho case of Sorenson v. Saint Alphonsus Regional Medical Center, Inc., the court stated that although ERISA did not apply due to ERISA exemption for church plans, ERISA principles were relevant, and the court used ERISA cases and guidance to formulate its holding. 48 Even though governmental plans are not subject to ERISA, most governmental plan fiduciaries are subject to similar fiduciary requirements. This means governmental plan fiduciaries have similar obligations to manage conflicts and prudently select investments. According to the comments section of the Uniform Management of Public Employee Retirement Systems Act, [a] fiduciary is under a duty to participants and beneficiaries not to be influenced by the interests of any third person. However, if fiduciaries are aware of the benefit to a recordkeeper of including an affiliated fund in the plan s investment options, but balance that benefit against the overall quality of the affiliated fund and the cost benefits to plan participants, it is still prudent to offer the affiliated fund. The key to compliance is an investigation of the facts and understanding of whether a potential conflict can be managed through disclosures. While governmental LA01/

22 plans are not subject to ERISA, given the similarities in duties, the DOL s position in Advisory Opinion A regarding managing conflicts through disclosures to the fiduciaries is an example of how to address conflict issues. Analysis State Law Prudence involves considering all of the relevant facts and circumstances before making a decision. When an affiliated fund can result in costs savings or other benefits and services for participants, that is a relevant piece of information that fiduciaries should take into consideration in addition to the other factors, such as past performance, level of risk, and other points generally included in reviewing investment funds. This holds true regardless of whether the fiduciary duty associated with selecting the funds arises under ERISA or state fiduciary laws. Whether by virtue of statutorily imposed prudence rules or the prudent investor rule under general trust law, governmental plan fiduciaries must generally act prudently and in the best interests of their plan participants. As described above, if the fiduciaries know that an affiliated fund can reduce plan fees, the fund is worth considering. Failure to do so could be imprudent. 49 According to the drafters of the Uniform Management of Public Employee Retirement Systems Act, [w]asting money of participants and beneficiaries is imprudent. This duty is present in every statement of fiduciary duties. Restatement of Trust 2d 404(a)(1)(A). 50 It is safe to say that, even if governmental plans are not subject to ERISA, governmental plan fiduciaries should act prudently and in the best interest of their plan participants. 51 LA01/

23 CONCLUSION Fiduciaries of retirement plans may be concerned that offering affiliated funds will present a prohibited transaction or conflict of interest. However, when the fees received by the recordkeeper and affiliated fund are reasonable compensation and the fiduciaries selecting the affiliated funds do not receive any additional compensation or benefit from selecting the fund, there is no prohibited transaction under ERISA. Further, with respect to any conflict that the recordkeeper may have with respect to the relationship with the affiliated fund, this conflict can be managed through disclosures to the plan fiduciaries and participants. Besides prohibited transaction and conflict concerns, fiduciaries of retirement plans (whether subject to ERISA or not) generally must select investment options prudently. This requires a process of considering the relevant facts and circumstances and then making an appropriate decision based on all of the available information. Fiduciaries cannot make an appropriate decision without considering multiple funds. It is only by considering the characteristics of competing funds that fiduciaries can determine that a particular fund is appropriate for the plan. Among the factors to consider when selecting investment options is cost. Affiliated funds have the potential of generating costs savings to participants through reduced recordkeeping or investment management fees. Additionally, affiliated funds may result in other benefits to participants in the form of investment education services or products such as guaranteed minimum withdrawal benefits. While affiliated funds may not always be chosen, given the potential for cost savings and other advantages, it is prudent to consider affiliated funds when making investment selections. The law and our analysis contained in this White Paper are current as of June, Changes may have occurred in the law since this paper was drafted. As a result, readers may want to consult with their legal advisers to determine if there have been any relevant developments since then. LA01/

24 ENDNOTES 1 See Tibble v. Edison International, 49 E.B.C. 1725, 1757 (C.D. CA 2010). 2 Id. 3 ERISA section 404(a). 4 ERISA section 404(a)(1). 5 ERISA section 404(a)(1)(B). 6 Id. 7 See In re Unisys Savings Plan Litigation, 74 F.3d 420,434 (3 rd Cir. 1996). 8 Id. 9 ERISA section 404(a)(1) C.F.R a-1(b). 11 Donovan v. Walton, 609 F. Supp. 1221, 1238 (D.C. Fla. 1985) (citations and footnote omitted) Fed. Reg (October 24, 2007). 13 See Tibble v. Edison International, 49 EBC 1725 (C.D. CA 2010) (noting that fiduciaries must engage in a thorough investigation of the merits of an investment and noting that the fiduciaries considered five investment criteria, including the expense ration, when selecting funds). 14 Id. 15 Id. 16 Id. 17 See Braden v. Wal-Mart Stores, Inc., 588 F.3d 585, 595 (8 th Cir. 2009). 18 ERISA section 404(a)(1)(A). 19 See 29 C.F.R a-1; DOL Interpretive Bulletin DOL Interpretive Bulletin See Laborers Nat l Pension Fund v. Northern Trust Quantitative Advisors Inc., 173 F.3d 313 (5 th Cir. 1999) (discussing the various different factors (e.g. risk, performance, etc.) considered by the plan s investment fiduciary). 22 DOL Advisory Opinion A 23 See Tibble v. Edison International, 49 EBC 1725 (C.D. CA 2010) Investment Company Fact Book, Investment Company Institute. 25 See In re Unisys Savings Plan Litigation, 74 F.3d 420 (3 rd Cir. 1996). 26 See Tibble v. Edison International, 49 EBC 1725 (C.D. CA 2010). 27 Tibble v. Edison International, 49 EBC 1725 (C.D. CA 2010); Braden v. Wal-Mart Stores, Inc., 588 F.3d 585 (8 th Cir. 2009). 28 Tibble, 49 EBC at Id. 30 ERISA section 406(b)(1) and (3); Internal Revenue Code section ERISA section 406(b)(1). 32 ERISA section 406(b)(3) C.F.R b-2(e)(1). 34 DOL Advisory Opinion A C.F.R b-2(c) Fed. Reg , (July 16, 2010 ( The Department notes, however, that in the meantime, ERISA section 404(a) continues to obligate fiduciaries to obtain and consider information relating to the cost of plan services and potential conflicts of interest presented by such service arrangements. ). 37 Id. at Fed. Reg , (July 16, 2010) C.FR b-2(c). 40 Id. 41 ERISA section 4(b)(1). 42 The 31 states adopting ERISA or similar language include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nevada, New Hampshire, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, and Washington. 43 Cal. Govt. Code section LA01/

25 44 Uniform Law Commission Legislative Fact Sheet Management of Public Employee Retirement Systems Act. 45 Restatement of the Law Third, Trusts See Board of Trustees of Employees Retirement System of City of Baltimore v. Mayor and City Council of Baltimore, 562 A.2d 720 (1989); Sorenson v. Saint Alphonsus Regional Medical Center, Inc., 118 P.3d 86 (2005). 47 Board of Trustees of Employees Retirement System of City of Baltimore v. Mayor and City Council of Baltimore, 562 A.2d 720 (1989). 48 Sorenson v. Saint Alphonsus Regional Medical Center, 118 P.3d 86 (2005). 49 Uniform Management of Public Employee Retirement Systems Act (1997) Comments. 50 Id. 51 See id. LA01/

26 EXHIBIT State Law Fiduciary Provisions Alabama--Ala. Code Section (a) The Board of Control shall be the trustees of the several funds of the Teachers' Retirement System created by this chapter as provided in Section , and shall have full power to invest and reinvest the funds... with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with the matters would use in the conduct of an enterprise of a like character and with like aims. Alaska-- AS Section (22) prudent investment standard means the degree of care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. Arizona--ARS Section (B)--AZ State Retirement System Investment management shall discharge the duties of the position with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with the same matters would use in the conduct of an enterprise of a like character and with like aims. Arkansas-- A.C.A. Section Trustees shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustees shall exercise reasonable care, skill, and caution. California--West's Ann.Cal.Gov.Code Section 20151(c) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims. Colorado--C.R.S.A. Section (2)(a) The trustees shall act in accordance with the provisions of this article and with the care, skill, prudence, and diligence in light of the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. Connecticut--Connecticut Uniform Prudent Investor Act, C.G.S.A. Section 45a- 541b(a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution. District of Columbia--DC ST Section 1-741(a)(1) The Board shall retain such fiduciary responsibility for the exercise of careful, skillful, prudent, and diligent oversight LA01/

27 of any person so designated as would be exercised by a prudent individual acting in a like capacity and familiar with such matters under like circumstances. Florida-- F.S.A. Section (15)(a) The program's assets are to be invested, on behalf of the program participants, with the care, skill, and diligence that a prudent person acting in a like manner would undertake. Idaho--I.C. Section (2)(b) the fiduciaries of the fund shall discharge their duties with respect to the fund solely in the interest of the members and their beneficiaries... with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; Illinois--40 ILCS Section 5/1-109(b) A fiduciary with respect to a retirement system or pension fund established under this Code shall discharge his or her duties with respect to the retirement system or pension fund solely in the interest of the participants and beneficiaries and... with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like aims; Indiana-- IC Section (a) The board shall invest its assets with the care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like aims. Kansas-- K.S.A. Section (4) In investing and reinvesting moneys in the fund and in acquiring, retaining, managing and disposing of investments of the fund, the board shall exercise the judgment, care, skill, prudence and diligence under the circumstances then prevailing, which persons of prudence, discretion and intelligence acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims. Kentucky-- KRS Section (c)(3) A trustee, officer, employee, or other fiduciary shall discharge duties with respect to the retirement system...with the care, skill, and caution under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an activity of like character and purpose. Louisiana-- LSA-R.S. Section 11:263(b) The prudent-man rule shall require each fiduciary of a retirement system and each board of trustees acting collectively on behalf of each system to act with the care, skill, prudence, and diligence under the circumstances prevailing that a prudent institutional investor acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. LA01/

28 Maryland--MD Code, State Personnel and Pensions, Section (2) A fiduciary shall discharge the fiduciary's duties with respect to the several systems solely in the interest of the participants and...with the care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; Massachusetts--M.G.L.A. 32 Section 23(3) A fiduciary as defined in section one shall discharge his duties for the exclusive purpose of providing benefits to members and their beneficiaries with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. Michigan--M.C.L.A. Section (3)(a) An investment fiduciary shall discharge his or her duties solely in the interest of the participants and the beneficiaries, and shall... act with the same care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a similar capacity and familiar with those matters would use in the conduct of a similar enterprise with similar aims. Mississippi--Miss. Code Ann. Section (12) The board, the executive director and employees shall discharge their duties with respect to the investments of the system solely for the interest of the fund with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent investor acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims, Missouri--V.A.M.S. Section (1) An investment fiduciary shall discharge his or her duties in the interest of the participants in the system and their beneficiaries and shall... act with the same care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a similar capacity and familiar with those matters would use in the conduct of a similar enterprise with similar aims. Montana--MCA Section (1) The board shall exercise its fiduciary authority in the same manner that would be used by a prudent person acting in the same capacity who is familiar with the circumstances and in an enterprise of a similar character with similar aims. Nevada--N.R.S. Section (3)(c)(1) The Committee and its individual members are not liable for any decision relating to investments if the Committee has... discharged its duties regarding the decision... with the care, skill, prudence and diligence that, under the circumstances existing at the time of the decision, a prudent person who is familiar with similar investments would use while acting in a similar capacity in conducting an enterprise of similar character and purpose. LA01/

A WHITE PAPER: C. Frederick Reish & Nicholas J. White

A WHITE PAPER: C. Frederick Reish & Nicholas J. White Selecting Plan Investments, Services and Providers: Satisfying ERISA s Fiduciary Requirements Using Fiduciary Benchmarks, Inc. Reports A WHITE PAPER: By C. Frederick Reish & Nicholas J. White Reish Luftman

More information

ERISA AND THE RESPONSIBILITIES OF A PLAN SPONSOR: THE NEED FOR AN EXPERIENCED INTERMEDIARY

ERISA AND THE RESPONSIBILITIES OF A PLAN SPONSOR: THE NEED FOR AN EXPERIENCED INTERMEDIARY ERISA AND THE RESPONSIBILITIES OF A PLAN SPONSOR: THE NEED FOR AN EXPERIENCED INTERMEDIARY The following addresses the potential benefits of retaining a financial intermediary for retirement plans, specifically

More information

Public School Teacher Experience Distribution. Public School Teacher Experience Distribution

Public School Teacher Experience Distribution. Public School Teacher Experience Distribution Public School Teacher Experience Distribution Lower Quartile Median Upper Quartile Mode Alabama Percent of Teachers FY Public School Teacher Experience Distribution Lower Quartile Median Upper Quartile

More information

Three-Year Moving Averages by States % Home Internet Access

Three-Year Moving Averages by States % Home Internet Access Three-Year Moving Averages by States % Home Internet Access Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana

More information

Clearing Up the Confusion Over a Retirement Plan Advisor s Fiduciary Status

Clearing Up the Confusion Over a Retirement Plan Advisor s Fiduciary Status Clearing Up the Confusion Over a Retirement Plan Advisor s Fiduciary Status Chuck Rolph, J.D. Director, Advanced Consulting Group Nationwide Financial Introduction This paper is directed to financial advisors

More information

ERISA Fiduciary Responsibilities A Primer for Plan Sponsors

ERISA Fiduciary Responsibilities A Primer for Plan Sponsors ERISA Fiduciary Responsibilities A Primer for Plan Sponsors Abigail B. Pancoast Senior Counsel, Lincoln Financial Group The information contained in this article is intended to provide general information,

More information

Model Regulation Service January 2006 DISCLOSURE FOR SMALL FACE AMOUNT LIFE INSURANCE POLICIES MODEL ACT

Model Regulation Service January 2006 DISCLOSURE FOR SMALL FACE AMOUNT LIFE INSURANCE POLICIES MODEL ACT Table of Contents Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 1. Model Regulation Service January 2006 Purpose Definition Exemptions Disclosure Requirements Insurer Duties

More information

Chex Systems, Inc. does not currently charge a fee to place, lift or remove a freeze; however, we reserve the right to apply the following fees:

Chex Systems, Inc. does not currently charge a fee to place, lift or remove a freeze; however, we reserve the right to apply the following fees: Chex Systems, Inc. does not currently charge a fee to place, lift or remove a freeze; however, we reserve the right to apply the following fees: Security Freeze Table AA, AP and AE Military addresses*

More information

What it Means to be an ERISA Fiduciary: A Comparison to the Securities Laws

What it Means to be an ERISA Fiduciary: A Comparison to the Securities Laws What it Means to be an ERISA Fiduciary: A Comparison to the Securities Laws By David C. Kaleda Most federally registered broker-dealers ( BDs ) and federally registered investment advisers ( RIAs ) are

More information

Prudent Investing and ERISA: Fees and the Fiduciary Duty of Care

Prudent Investing and ERISA: Fees and the Fiduciary Duty of Care y Prudent Investing and ERISA: Fees and the Fiduciary Duty of Care by Melanie L. Fein Fein Law Office Washington, DC MAY 2015 1 June 2, 2015 Prudent Investing and ERISA: Fees and the Fiduciary Duty of

More information

NON-RESIDENT INDEPENDENT, PUBLIC, AND COMPANY ADJUSTER LICENSING CHECKLIST

NON-RESIDENT INDEPENDENT, PUBLIC, AND COMPANY ADJUSTER LICENSING CHECKLIST NON-RESIDENT INDEPENDENT, PUBLIC, AND COMPANY ADJUSTER LICENSING CHECKLIST ** Utilize this list to determine whether or not a non-resident applicant may waive the Oklahoma examination or become licensed

More information

Impacts of Sequestration on the States

Impacts of Sequestration on the States Impacts of Sequestration on the States Alabama Alabama will lose about $230,000 in Justice Assistance Grants that support law STOP Violence Against Women Program: Alabama could lose up to $102,000 in funds

More information

NOTICE OF PROTECTION PROVIDED BY [STATE] LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION

NOTICE OF PROTECTION PROVIDED BY [STATE] LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION NOTICE OF PROTECTION PROVIDED BY This notice provides a brief summary of the [STATE] Life and Health Insurance Guaranty Association (the Association) and the protection it provides for policyholders. This

More information

State FCRA Rulings. Abide by the Federal Trade Commission s Fair Credit Reporting Act (FCRA), 15 U. S. C. 1661 et seq. and the following state ruling:

State FCRA Rulings. Abide by the Federal Trade Commission s Fair Credit Reporting Act (FCRA), 15 U. S. C. 1661 et seq. and the following state ruling: State FCRA Rulings Alabama Alaska and the following state ruling: AS 12.62.160 (b) (8)Release and Use of Criminal Justice Information Subject to the requirements of this section, and except as otherwise

More information

HEALTH CARE INTERPRETERS: ARE THEY MANDATORY REPORTERS OF CHILD ABUSE? 1

HEALTH CARE INTERPRETERS: ARE THEY MANDATORY REPORTERS OF CHILD ABUSE? 1 1444 I St NW, Suite 1105 Washington, DC 20005 (202) 289-7661 Fax (202) 289-7724 I. Introduction HEALTH CARE INTERPRETERS: ARE THEY MANDATORY REPORTERS OF CHILD ABUSE? 1 As the nation continues to diversify

More information

MAINE (Augusta) Maryland (Annapolis) MICHIGAN (Lansing) MINNESOTA (St. Paul) MISSISSIPPI (Jackson) MISSOURI (Jefferson City) MONTANA (Helena)

MAINE (Augusta) Maryland (Annapolis) MICHIGAN (Lansing) MINNESOTA (St. Paul) MISSISSIPPI (Jackson) MISSOURI (Jefferson City) MONTANA (Helena) HAWAII () IDAHO () Illinois () MAINE () Maryland () MASSACHUSETTS () NEBRASKA () NEVADA (Carson ) NEW HAMPSHIRE () OHIO () OKLAHOMA ( ) OREGON () TEXAS () UTAH ( ) VERMONT () ALABAMA () COLORADO () INDIANA

More information

BUSINESS DEVELOPMENT OUTCOMES

BUSINESS DEVELOPMENT OUTCOMES BUSINESS DEVELOPMENT OUTCOMES Small Business Ownership Description Total number of employer firms and self-employment in the state per 100 people in the labor force, 2003. Explanation Business ownership

More information

EACUBO 2011 Pittsburgh Workshop

EACUBO 2011 Pittsburgh Workshop EACUBO 2011 Pittsburgh Workshop ERISA Fiduciary Responsibilities for 403(b) Plans: Keys to Implementation June 17, 2011 Presented by: Ed Wodarczyk, Esq. Rhoades & Wodarczyk, LLC 330 Grant Street; Suite

More information

Workers Compensation State Guidelines & Availability

Workers Compensation State Guidelines & Availability ALABAMA Alabama State Specific Release Form Control\Release Forms_pdf\Alabama 1-2 Weeks ALASKA ARIZONA Arizona State Specific Release Form Control\Release Forms_pdf\Arizona 7-8 Weeks by mail By Mail ARKANSAS

More information

SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS. The Board of Governors of the Federal Reserve System (Board), the Federal Deposit

SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS. The Board of Governors of the Federal Reserve System (Board), the Federal Deposit SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS The Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency

More information

Englishinusa.com Positions in MSN under different search terms.

Englishinusa.com Positions in MSN under different search terms. Englishinusa.com Positions in MSN under different search terms. Search Term Position 1 Accent Reduction Programs in USA 1 2 American English for Business Students 1 3 American English for Graduate Students

More information

SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS. or branches outside of its home state primarily for the purpose of deposit production.

SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS. or branches outside of its home state primarily for the purpose of deposit production. SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (the agencies)

More information

2009-10 STATE AND LOCAL GOVERNMENT TAX AND REVENUE RANKINGS. By Jacek Cianciara

2009-10 STATE AND LOCAL GOVERNMENT TAX AND REVENUE RANKINGS. By Jacek Cianciara 2009-10 STATE AND LOCAL GOVERNMENT TAX AND REVENUE RANKINGS By Jacek Cianciara Wisconsin Department of Revenue Division of Research and Policy December 12, 2012 TABLE OF CONTENTS Key Findings 3 Introduction

More information

State Pest Control/Pesticide Application Laws & Regulations. As Compiled by NPMA, as of December 2011

State Pest Control/Pesticide Application Laws & Regulations. As Compiled by NPMA, as of December 2011 State Pest Control/Pesticide Application Laws & As Compiled by NPMA, as of December 2011 Alabama http://alabamaadministrativecode.state.al.us/docs/agr/mcword10agr9.pdf Alabama Pest Control Alaska http://dec.alaska.gov/commish/regulations/pdfs/18%20aac%2090.pdf

More information

A-79. Appendix A Overview and Detailed Tables

A-79. Appendix A Overview and Detailed Tables Table A-8a. Overview: Laws Expressly Granting Minors the Right to Consent Disclosure of Related Information to Parents* Sexually Transmitted Disease and HIV/AIDS** Treatment Given or Needed Alabama 14

More information

Unemployment Insurance and Social Security Retirement Offsets

Unemployment Insurance and Social Security Retirement Offsets Unemployment Insurance and Social Security Retirement Offsets By National Employment Law Project December 2003 Introduction The policy of denying or reducing unemployment insurance benefits to Social Security

More information

Model Regulation Service April 2005 GUIDELINES ON CORPORATE OWNED LIFE INSURANCE

Model Regulation Service April 2005 GUIDELINES ON CORPORATE OWNED LIFE INSURANCE Model Regulation Service April 2005 Corporate Owned Life Insurance (COLI) is life insurance a corporate employer buys covering one or more employees. With COLI, the employer is generally the applicant,

More information

High Risk Health Pools and Plans by State

High Risk Health Pools and Plans by State High Risk Health Pools and Plans by State State Program Contact Alabama Alabama Health 1-866-833-3375 Insurance Plan 1-334-263-8311 http://www.alseib.org/healthinsurance/ahip/ Alaska Alaska Comprehensive

More information

Managing Defined Contribution Plan Investment Policy Statements

Managing Defined Contribution Plan Investment Policy Statements Managing Defined Contribution Plan Investment Policy Statements An article by Fred Reish Drinker Biddle & Reath LLP 1800 Century Park East, Suite 1500 Los Angeles, California 90067 (310) 203-4000 fred.reish@dbr.com

More information

Model Regulation Service July 2005 LIFE INSURANCE MULTIPLE POLICY MODEL REGULATION

Model Regulation Service July 2005 LIFE INSURANCE MULTIPLE POLICY MODEL REGULATION Table of Contents Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 1. Model Regulation Service July 2005 Purpose Authority Exemptions Duties of Insurers Severability Effective

More information

The Final 408(b)(2) Regulation: Impact on Investment Managers

The Final 408(b)(2) Regulation: Impact on Investment Managers Investment Management Bulletin May 2012 The Final 408(b)(2) Regulation: Impact on Investment Managers By Fred Reish, Joan Neri, Bruce Ashton, Gary Ammon and Brad Campbell This bulletin discusses the impact

More information

Expanding Your Business Through Franchising What Steps You Need to Take to Successfully Franchise Your Business. By Robert J.

Expanding Your Business Through Franchising What Steps You Need to Take to Successfully Franchise Your Business. By Robert J. Expanding Your Business Through Franchising What Steps You Need to Take to Successfully Franchise Your Business By Robert J. Steinberger What is a Franchise? California Corporation Code Section 31005.

More information

Defined Contribution Legal and Regulatory Update

Defined Contribution Legal and Regulatory Update Defined Contribution Legal and Regulatory Update for Government Clients JULY 2015 We are committed to providing you with the information and tools you need to help meet your fiduciary responsibilities

More information

MAY INSURANCE AGENTS DOING BUSINESS IN THE STATE OF NEVADA RECIEVE BOTH A COMMIS 1 THE CUSTOMER?

MAY INSURANCE AGENTS DOING BUSINESS IN THE STATE OF NEVADA RECIEVE BOTH A COMMIS 1 THE CUSTOMER? MAY INSURANCE AGENTS DOING BUSINESS IN THE STATE OF NEVADA RECIEVE BOTH A COMMISSION AND COMPENSATION FROM THE CUSTOMER? (FORC Journal: Vol. 26 Edition 2 - Summer 2015) Vernon E. Leverty, Esq. (775) 322-6636

More information

SURVEY OF THE CURRENT INSURANCE REGULATORY ENVIRONMENT FOR AFFINITY MARKETIG 1 A

SURVEY OF THE CURRENT INSURANCE REGULATORY ENVIRONMENT FOR AFFINITY MARKETIG 1 A SURVEY OF THE CURRENT INSURANCE REGULATORY ENVIRONMENT FOR AFFINITY MARKETIG ARRANGEMENTS (FORC Journal: Vol. 23 Edition 4 - Winter 2012) Kevin G. Fitzgerald, Esq. (414) 297-5841 N. Wesley Strickland (850)

More information

State Tax of Social Security Income. State Tax of Pension Income. State

State Tax of Social Security Income. State Tax of Pension Income. State State Taxation of Retirement Income The following chart shows generally which states tax retirement income, including and pension States shaded indicate they do not tax these forms of retirement State

More information

MINIMUM CAPITAL & SURPLUS AND STATUTORY DEPOSITS AND WHO THEY PROTECT. By: Ann Monaco Warren, Esq. 573.634.2522

MINIMUM CAPITAL & SURPLUS AND STATUTORY DEPOSITS AND WHO THEY PROTECT. By: Ann Monaco Warren, Esq. 573.634.2522 MINIMUM CAPITAL & SURPLUS AND STATUTORY DEPOSITS AND WHO THEY PROTECT By: Ann Monaco Warren, Esq. 573.634.2522 With the spotlight on the financial integrity and solvency of corporations in the U.S. by

More information

State Tax Information

State Tax Information State Tax Information The information contained in this document is not intended or written as specific legal or tax advice and may not be relied on for purposes of avoiding any state tax penalties. Neither

More information

NAIC ANNUITY TRAINING Regulations By State

NAIC ANNUITY TRAINING Regulations By State Select a state below to display the current regulation and requirements, or continue to scroll down. Light grey text signifies states that have not adopted an annuity training program. Alabama Illinois

More information

SURVEY OF SERVICE CONTRACT LEGISLATION

SURVEY OF SERVICE CONTRACT LEGISLATION SURVEY OF SERVICE CONTRACT LEGISLATION (FORC Journal: Vol. 23 Edition 1 - Spring 2012) Alan J. Schmitz, Esq. (720) 200-4242 Over the past decade numerous jurisdictions have adopted new or updated service

More information

Real Progress in Food Code Adoption

Real Progress in Food Code Adoption Real Progress in Food Code Adoption The Association of Food and Drug Officials (AFDO), under contract to the Food and Drug Administration, is gathering data on the progress of FDA Food Code adoptions by

More information

FIDUCIARY CONSIDERATIONS IN OFFERING A BROKERAGE WINDOW

FIDUCIARY CONSIDERATIONS IN OFFERING A BROKERAGE WINDOW FIDUCIARY CONSIDERATIONS IN OFFERING A BROKERAGE WINDOW by Fred Reish and Bruce Ashton Compliments of TD Ameritrade Content provided by: C. Frederick Reish, Partner at Drinker Biddle & Reath, LLP and Bruce

More information

Summary of Laws Regarding International Adoptions Finalized Abroad 50 States and 6 U.S. Territories

Summary of Laws Regarding International Adoptions Finalized Abroad 50 States and 6 U.S. Territories Summary of Laws Regarding International Adoptions Finalized Abroad 50 States and 6 U.S. Territories (7/01) Effect of Foreign Adoption Decree Twenty-five States and one territory (Commonwealth of the Northern

More information

FELONY DUI SYNOPSIS. 46 states have felony DUI. Charts 1 and 2 detail the felony threshold for each of the 46 states analyzed.

FELONY DUI SYNOPSIS. 46 states have felony DUI. Charts 1 and 2 detail the felony threshold for each of the 46 states analyzed. FELONY DUI SYNOPSIS The information in the following charts was compiled by examining the felony DUI laws in all 50 sates and the District of Columbia. The analysis focuses on the felony DUI threshold,

More information

Uniform Cost-Sharing Regulations

Uniform Cost-Sharing Regulations UniFirst.com Uniform Program Options Uniform Cost-Sharing Regulations Uniform cost-sharing through employee payroll deductions presents many benefits to both the uniform wearer and the company. The net

More information

A Euclid Specialty Managers White Paper

A Euclid Specialty Managers White Paper A Euclid Specialty Managers White Paper BY JONATHAN M. CERRITO, Esq. MICHAEL R. DAUM, Esq. SPECIAL THANKS TO BLITMAN AND KING LLP February 2, 2016 Foreword As more employers offer defined contribution

More information

State Income Taxation of Trusts - Fifty-One Different Stories and a Few Surprise Endings

State Income Taxation of Trusts - Fifty-One Different Stories and a Few Surprise Endings Chicago Estate Planning Council January 22, 2012 State Income Taxation of Trusts - Fifty-One Different Stories and a Few Surprise Endings Christine L. Albright Holland & Knight LLP This document is not

More information

LPSC Renewable Energy Pilot y RFPs issued by Utility Companies by Order of Commission, November 2010

LPSC Renewable Energy Pilot y RFPs issued by Utility Companies by Order of Commission, November 2010 Renewable Energy LPSC Renewable Energy Pilot y RFPs issued by Utility Companies by Order of Commission, November 2010 y Searching for various forms of renewable energy and their actual cost in Louisiana

More information

State-Specific Annuity Suitability Requirements

State-Specific Annuity Suitability Requirements Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Effective 10/16/11: Producers holding a life line of authority on or before 10/16/11 who sell or wish to sell

More information

********************

******************** THE SURETY & FIDELITY ASSOCIATION OF AMERICA 1101 Connecticut Avenue, N.W., Suite 800 Washington, D. C. 20036 Phone: (202) 463-0600 Fax: (202) 463-0606 Web page: www.surety.org APPLICATION Application

More information

State Tax Information

State Tax Information State Tax Information The information contained in this document is not intended or written as specific legal or tax advice and may not be relied on for purposes of avoiding any state tax penalties. Neither

More information

Data show key role for community colleges in 4-year

Data show key role for community colleges in 4-year Page 1 of 7 (https://www.insidehighered.com) Data show key role for community colleges in 4-year degree production Submitted by Doug Lederman on September 10, 2012-3:00am The notion that community colleges

More information

Low-Profit Limited Liability Company (L3C) Date: July 29, 2013. [Low-Profit Limited Liability Company (L3C)] [July 29, 2013]

Low-Profit Limited Liability Company (L3C) Date: July 29, 2013. [Low-Profit Limited Liability Company (L3C)] [July 29, 2013] Topic: Question by: : Low-Profit Limited Liability Company (L3C) Kevin Rayburn, Esq., MBA Tennessee Date: July 29, 2013 Manitoba Corporations Canada Alabama Alaska Arizona Arkansas California Colorado

More information

We do require the name and mailing address of each person forming the LLC.

We do require the name and mailing address of each person forming the LLC. Topic: LLC Managers/Members Question by: Jeff Harvey : Idaho Date: March 7, 2012 Manitoba Corporations Canada Alabama Alaska Arizona Arkansas California Colorado Arizona requires that member-managed LLCs

More information

Licensure Resources by State

Licensure Resources by State Licensure Resources by State Alabama Alabama State Board of Social Work Examiners http://socialwork.alabama.gov/ Alaska Alaska Board of Social Work Examiners http://commerce.state.ak.us/dnn/cbpl/professionallicensing/socialworkexaminers.as

More information

MASS MARKETING OF PROPERTY AND LIABILITY INSURANCE MODEL REGULATION

MASS MARKETING OF PROPERTY AND LIABILITY INSURANCE MODEL REGULATION Table of Contents Model Regulation Service January 1996 MASS MARKETING OF PROPERTY AND LIABILITY INSURANCE MODEL REGULATION Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7.

More information

Consent to Appointment as Registered Agent

Consent to Appointment as Registered Agent Consent to Appointment as Registered Agent This form is used by the person or business entity that agrees to act as the registered agent for a limited liability company. Every person or business entity

More information

Net-Temps Job Distribution Network

Net-Temps Job Distribution Network Net-Temps Job Distribution Network The Net-Temps Job Distribution Network is a group of 25,000 employment-related websites with a local, regional, national, industry and niche focus. Net-Temps customers'

More information

Marriage Equality Relationships in the States

Marriage Equality Relationships in the States Marriage Equality Relationships in the States January 7, 2015 The legal recognition of same-sex relationships has been a divisive issue across the United States, particularly during the past two decades.

More information

Question by: Karon Beyer. Date: March 28, 2012. [LLC Question] [2012-03-29]

Question by: Karon Beyer. Date: March 28, 2012. [LLC Question] [2012-03-29] Topic: LLC Question Question by: Karon Beyer : Florida Date: March 28, 2012 Manitoba Corporations Canada Alabama Alaska Arizona Arkansas California Colorado Arizona uses "manager" or "member," but not

More information

A PUBLICATION OF THE NATIONAL COUNCIL FOR ADOPTION. HEALTH INSURANCE FOR ADOPTED CHILDREN by Mark McDermott, J.D. with Elisa Rosman, Ph.D.

A PUBLICATION OF THE NATIONAL COUNCIL FOR ADOPTION. HEALTH INSURANCE FOR ADOPTED CHILDREN by Mark McDermott, J.D. with Elisa Rosman, Ph.D. Adoption Advocate NICOLE FICERE CALLAHAN, EDITOR CHUCK JOHNSON, EDITOR NO. 19 DECEMBER 2009 A PUBLICATION OF THE NATIONAL COUNCIL FOR ADOPTION HEALTH INSURANCE FOR ADOPTED CHILDREN by Mark McDermott, J.D.

More information

Table of Mortgage Broker (and Originator) Bond Laws by State Current as of July 1, 2010

Table of Mortgage Broker (and Originator) Bond Laws by State Current as of July 1, 2010 Alabama Ala. Code 5-25-5 Bond only required where licensee does not submit evidence of net worth. Loan originators may be covered by Alaska 25,000 Alaska Stat. 06.60.045 Arizona $10,000-$15,000 Ariz. Rev.

More information

Case 1:13-cv-10524 Document 1 Filed 03/07/13 Page 1 of 19 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

Case 1:13-cv-10524 Document 1 Filed 03/07/13 Page 1 of 19 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS Case 1:13-cv-10524 Document 1 Filed 03/07/13 Page 1 of 19 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS Patricia Boudreau, Alex Gray, ) And Bobby Negron ) On Behalf of Themselves and All

More information

MEMORANDUM. Express Consent Requirement for Delivery of Recorded Messages

MEMORANDUM. Express Consent Requirement for Delivery of Recorded Messages MEMORANDUM DATE: August 26, 2008 RE: Express Consent Requirement for Delivery of Recorded Messages The following sets forth the individual state and federal requirements regarding express consent for the

More information

Retirement Plan RFPs. John H. McKendry, Jr. & Heidi A. Lyon. Warner Norcross & Judd LLP 2011

Retirement Plan RFPs. John H. McKendry, Jr. & Heidi A. Lyon. Warner Norcross & Judd LLP 2011 Retirement Plan RFPs John H. McKendry, Jr. & Heidi A. Lyon Warner Norcross & Judd LLP 2011 OVERVIEW Legal Background Methods for Selecting Providers RFP Process 22 Steps and Considerations Provider Models

More information

MODEL REGULATION TO REQUIRE REPORTING OF STATISTICAL DATA BY PROPERTY AND CASUALTY INSURANCE COMPANIES

MODEL REGULATION TO REQUIRE REPORTING OF STATISTICAL DATA BY PROPERTY AND CASUALTY INSURANCE COMPANIES Model Regulation Service June 2004 MODEL REGULATION TO REQUIRE REPORTING OF STATISTICAL DATA Table of Contents Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section

More information

American C.E. Requirements

American C.E. Requirements American C.E. Requirements Alaska Board of Nursing Two of the following: 30 contact hours 30 hours of professional nursing activities 320 hours of nursing employment Arizona State Board of Nursing Arkansas

More information

529 College Savings Plans: Lessons Learned for State-Sponsored Retirement Initiatives

529 College Savings Plans: Lessons Learned for State-Sponsored Retirement Initiatives 529 College Savings Plans: Lessons Learned for State-Sponsored Retirement Initiatives Presented by Andrea Feirstein AKF Consulting Group October 16, 2015 Summary: 529 Parallels for Retirement Plans State

More information

ANNEX III SCHEDULE OF THE UNITED STATES HEADNOTES

ANNEX III SCHEDULE OF THE UNITED STATES HEADNOTES ANNEX III SCHEDULE OF THE UNITED STATES HEADNOTES 1. Commitments in these sub-sectors under Chapter 11 () are undertaken subject to the limitations and conditions set forth in these headnotes and in the

More information

List of State Residual Insurance Market Entities and State Workers Compensation Funds

List of State Residual Insurance Market Entities and State Workers Compensation Funds List of State Residual Insurance Market Entities and State Workers Compensation Funds On November 26, 2002, President Bush signed into law the Terrorism Risk Insurance Act of 2002 (Public Law 107-297,

More information

STATE SECURITES EXEMPTIONS & LEGENDS

STATE SECURITES EXEMPTIONS & LEGENDS STATE SECURITES EXEMPTIONS & LEGENDS 1 Whether you raise capital by selling equity or debt, the offering will be viewed as selling securities. Each securities offering must either be registered with federal

More information

A/B MAC Jurisdiction 1 Original Medicare Claims Processor

A/B MAC Jurisdiction 1 Original Medicare Claims Processor A/B MAC Jurisdiction 1 Jurisdiction 1 - American Samoa, California, Guam, Hawaii, Nevada and Northern Mariana Islands Total Number of Fee-For-Service Beneficiaries: 3,141,183 (as of Total Number of Beneficiaries

More information

2014 INCOME EARNED BY STATE INFORMATION

2014 INCOME EARNED BY STATE INFORMATION BY STATE INFORMATION This information is being provided to assist in your 2014 tax preparations. The information is also mailed to applicable Columbia fund non-corporate shareholders with their year-end

More information

IIAC GUIDANCE: UNITED STATES SNOWBIRD AND TEMPORARY RESIDENT EXEMPTIONS

IIAC GUIDANCE: UNITED STATES SNOWBIRD AND TEMPORARY RESIDENT EXEMPTIONS IIAC GUIDANCE: UNITED STATES SNOWBIRD AND TEMPORARY RESIDENT EXEMPTIONS August 2012 IIAC Guidance on United States Snowbird and Temporary Resident Exemptions August 2012 This guidance reviews the U.S.

More information

2015 ACEP POLL AFFORDABLE CARE ACT RESEARCH RESULTS

2015 ACEP POLL AFFORDABLE CARE ACT RESEARCH RESULTS 2015 ACEP POLL AFFORDABLE CARE ACT RESEARCH RESULTS Prepared For: American College of Emergency Physicians March 2015 2015 Marketing General Incorporated 625 North Washington Street, Suite 450 Alexandria,

More information

The Basics of Fiduciary Responsibility under ERISA

The Basics of Fiduciary Responsibility under ERISA The Basics of Fiduciary Responsibility under ERISA Prepared by Elizabeth A. LaCombe, Esq. I Who Is A Fiduciary Under the Employee Retirement Income Security Act of 1974 (ERISA)? Any person or entity who:

More information

STATE-SPECIFIC ANNUITY SUITABILITY REQUIREMENTS

STATE-SPECIFIC ANNUITY SUITABILITY REQUIREMENTS Alabama Alaska Arizona Arkansas California This jurisdiction has pending annuity training legislation/regulation Annuity Training Requirement Currently Effective Initial 8-Hour Annuity Training Requirement:

More information

State General Sales Tax Rates 2015 As of January 1, 2015

State General Sales Tax Rates 2015 As of January 1, 2015 4-Feb-15 General Sales Tax Rates 2015 As of January 1, 2015 Exemptions for General Sales Tax Rate (%) Food 1 Prescription Nonprescription Arizona 5.6 Exempt Exempt Taxable Arkansas 6.5 1.5 4 Exempt Taxable

More information

Question for the filing office of Texas, Re: the Texas LLC act. Professor Daniel S. Kleinberger. William Mitchell College of Law, Minnesota

Question for the filing office of Texas, Re: the Texas LLC act. Professor Daniel S. Kleinberger. William Mitchell College of Law, Minnesota Topic: Question by: : Question for the filing office of Texas, Re: the Texas LLC act Professor Daniel S. Kleinberger William Mitchell College of Law, Minnesota Date: March 18, 2012 Manitoba Corporations

More information

How To Pay Medical Only Claims On Workers Compensation Claims

How To Pay Medical Only Claims On Workers Compensation Claims Workers Compensation Small Medical-Only Claims: Should an employer pay them or turn them in to the insurance company? by Maureen Gallagher The most common question an insurance agent gets from employers

More information

SUMMARY: Pursuant to section 552a(e)(12) of the Privacy Act of 1974, as amended, and the

SUMMARY: Pursuant to section 552a(e)(12) of the Privacy Act of 1974, as amended, and the This document is scheduled to be published in the Federal Register on 10/01/2015 and available online at http://federalregister.gov/a/2015-24648, and on FDsys.gov DEPARTMENT OF THE TREASURY Internal Revenue

More information

How To Manage The Risks Of An Erisa Fiduciary

How To Manage The Risks Of An Erisa Fiduciary Mitigating fiduciary liability for defined contribution plan investment decisions Vanguard commentary June 2013 Executive summary. In recent years, several high-profile class-action lawsuits have alleged

More information

ERISA FIDUCIARY RESPONSIBILITY: FIDUCIARY RELIANCE ON REGISTERED INVESTMENT ADVISORS

ERISA FIDUCIARY RESPONSIBILITY: FIDUCIARY RELIANCE ON REGISTERED INVESTMENT ADVISORS ERISA FIDUCIARY RESPONSIBILITY: FIDUCIARY RELIANCE ON REGISTERED INVESTMENT ADVISORS WHITE PAPER Gary J. Caine, FSA REGIONAL DIRECTOR INTRODUCTION Plan sponsors have become more concerned about the investments

More information

State Specific Annuity Suitability Requirements updated 10/10/11

State Specific Annuity Suitability Requirements updated 10/10/11 Alabama Alaska Ai Arizona Arkansas California This jurisdiction has pending annuity training legislation/regulation Initial 8 Hour Annuity Training Requirement: Prior to selling annuities in California,

More information

Sponsored by ishares. Prepared by The Wagner Law Group. Fiduciary Status. Understanding the Different Roles and Status of 401(k) Fiduciaries

Sponsored by ishares. Prepared by The Wagner Law Group. Fiduciary Status. Understanding the Different Roles and Status of 401(k) Fiduciaries 401(k) Fiduciary Toolkit Sponsored by ishares Prepared by The Wagner Law Group Fiduciary Status Understanding the Different Roles and Status of 401(k) Fiduciaries IMPORTANT INFORMATION The Wagner Law Group

More information

States Ranked by Alcohol Tax Rates: Beer (as of March 2009) Ranking State Beer Tax (per gallon)

States Ranked by Alcohol Tax Rates: Beer (as of March 2009) Ranking State Beer Tax (per gallon) States Ranked by Alcohol Tax Rates: Beer (as of March 2009) Ranking State Beer Tax (per gallon) Sales Tax Applied 1 Wyoming $0.02 4% 2 4 8 10 Missouri $0.06 4.225% Wisconsin $0.06 5% Colorado $0.08 2.9%

More information

PUBLIC HOUSING AUTHORITY COMPENSATION

PUBLIC HOUSING AUTHORITY COMPENSATION PUBLIC HOUSING AUTHORITY COMPENSATION Background After concerns were raised about the level of compensation being paid to some public housing authority (PHA) leaders, in August 2011 HUD reached out to

More information

D.C. Code Ann. Prohibits employment discrimination on the basis of tobacco use except where

D.C. Code Ann. Prohibits employment discrimination on the basis of tobacco use except where National Conference of State Legislatures Discrimination Laws Regarding Off-Duty Conduct Updated October 18, 2010 The issue of employees' rights to engage in certain off-duty activities and in the competing

More information

FIDUCIARY LIABILITY INSURANCE, BONDING, AND SERVICE AGREEMENTS FOR SPONSORS

FIDUCIARY LIABILITY INSURANCE, BONDING, AND SERVICE AGREEMENTS FOR SPONSORS FIDUCIARY LIABILITY INSURANCE, BONDING, AND SERVICE AGREEMENTS FOR SPONSORS 2007 by: Marcia S. Wagner, Esq. The Wagner Law Group A Professional Corporation 99 Summer Street, 13 th Floor Boston, MA 02110

More information

State Corporate Income Tax Rates As of July 1, 2009

State Corporate Income Tax Rates As of July 1, 2009 State Tax Rates and Special Rates or Notes Brackets Alabama 6.5% Federal deductibility Alaska 1.0% > $0 2.0 > 10K 3.0 > 20K 4.0 > 30K 5.0 > 40K 6.0 > 50K 7.0 > 60K 8.0 > 70K 9.0 > 80K 9.4 > 90K Arizona

More information

IRS Request for Assistance re New EIN and True Owner. Question by: Sarah Steinbeck on behalf of Leslie Reynolds. Date: 5 August 2010

IRS Request for Assistance re New EIN and True Owner. Question by: Sarah Steinbeck on behalf of Leslie Reynolds. Date: 5 August 2010 Topic: IRS Request for Assistance re New EIN and True Owner Question by: Sarah Steinbeck on behalf of Leslie Reynolds Jurisdiction: Colorado/NASS Date: 5 August 2010 Jurisdiction Question(s) Have you spoken

More information

What to Know About State CPA Reciprocity Rules. John Gillett, PhD, CPA Chair, Department of Accounting Bradley University, Peoria, IL

What to Know About State CPA Reciprocity Rules. John Gillett, PhD, CPA Chair, Department of Accounting Bradley University, Peoria, IL What to Know About State CPA Reciprocity Rules Paul Swanson, MBA, CPA Instructor of Accounting John Gillett, PhD, CPA Chair, Department of Accounting Kevin Berry, PhD, Assistant Professor of Accounting

More information

The New Fiduciary Regs: A Practical Review Part II

The New Fiduciary Regs: A Practical Review Part II This update is published by Ferenczy Benefits Law Center LLP to provide information about recent developments to our clients and friends. It is intended to be informational and does not constitute legal

More information

Fuel Taxes: December 2012. A State-by-State Comparison

Fuel Taxes: December 2012. A State-by-State Comparison Fuel Taxes: A -by- Comparison December 2012 The 18th Amendment to the Washington Constitution dedicates motor fuel tax collections to highway purposes. Strategic Planning and Finance Number of s Fuel

More information

The Benefits of Mandatory Distributions

The Benefits of Mandatory Distributions The Benefits of Mandatory Distributions A WHITE PAPER BY FRED REISH AND BRUCE ASHTON C. Frederick Reish (310) 203-4047 Fred.Reish@dbr.com www.drinkerbiddle.com/freish Bruce L. Ashton (310) 203-4048 Bruce.Ashton@dbr.com

More information

Nurse Aide Training Requirements, 2011

Nurse Aide Training Requirements, 2011 Nurse Aide Training Requirements, 2011 Background Federal legislation (Omnibus Budget Reconciliation Act of 1987) and associated regulations (42 CFR 483.152) require that Medicare- and Medicaid-certified

More information

PUBLIC INSURANCE ADJUSTER FEE PROVISIONS 50 STATE SURVEY AS OF 6/29/07. LIKELY YES [Cal. Ins. Code 15027]

PUBLIC INSURANCE ADJUSTER FEE PROVISIONS 50 STATE SURVEY AS OF 6/29/07. LIKELY YES [Cal. Ins. Code 15027] Alabama Alaska Arizona Arkansas California [Cal. Ins. Code 15027] ] Colorado [Cal. Ins. Code 15027] Connecticut Delaware of the actual or final settlement of a loss [Conn. Ins. Code 38a-788-8] 2.5% of

More information

SALES TAX EXEMPTION FOR ADVERTISING JUNE, 2015 JOINT SUBCOMMITTEE TO EVALUATE TAX PREFERENCES

SALES TAX EXEMPTION FOR ADVERTISING JUNE, 2015 JOINT SUBCOMMITTEE TO EVALUATE TAX PREFERENCES EXECUTIVE SUMMARY: SALES TAX EXEMPTION FOR ADVERTISING JUNE, 2015 JOINT SUBCOMMITTEE TO EVALUATE TAX PREFERENCES PREFERENCE: 58.1-609.6 (5) EXEMPTS ADVERTISING FROM SALES AND USE TAX. SUMMARY: PROVIDES

More information