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ERISA Recapture Accounts: Understanding How ERISA Applies
Presentor: Stephen Forbes Recorded Date: 8/14/2013 Duration: 60 Min.

This program was recorded during a live presentation on August 14, 2013.

Fee disclosure regulations (408b-2), the plan fee court cases, and the release of Schedule C (Form 5500) – all have focused increased attention on revenue sharing payments from plan investments to financial institutions and recordkeepers. One of the techniques used in connection with the revenue sharing payments is the ERISA recapture account.

For years, there has been much discussion and debate as to whether such accounts were plan assets and how the prohibited transaction rules applied to such accounts. In a recently released DOL Advisory Opinion 2013-03A, the DOL has provided some important guidance with respect to ERISA recapture accounts. This web seminar addresses all of the important issues regarding ERISA recapture accounts:

  • How to define the accounts
  • How the different types of accounts affect the rules
  • How the prohibited transaction and fiduciary rules apply to the accounts
  • What plan language is necessary
  • How a plan reports and discloses payments to and from the accounts
  • With well-crafted examples, SunGard's ERISA consultant and presesnter, Stephen Forbes, illustrates how these arrangements work and how to apply the ERISA requirements to such accounts. This program helps practitioners obtain the necessary understanding to apply the rules properly, avoiding hours of difficult research.

    Topics include:

    • What is an ERISA recapture account?
    • What are the different types of ERISA recapture accounts?
    • How do the prohibited transaction rules apply?
    • How do the fiduciary rules apply?
    • What needs to be disclosed? By whom?
    • What needs to be reported on Form 5500? How?
    • Are the accounts plan assets?
    • What fiduciary exposure comes with these accounts?
    • What does a plan do with leftover money?
    • What plan language is necessary?

    Prerequisites: There are no prerequisites or other advanced preparation for this program. However, the instructor assumes participants are generally familiar with the operation, reporting, and disclosure requirements which apply to qualified defined contribution plans.

    Level: Overview.

    Instructional Delivery Method
    Group – Internet-Based

    Speaker: Stephen W. Forbes, J.D., LL.M.
    Author of The 5500 Filing Guide

    Following this program, an attendee should be able to:

    1. Determine whether revenue sharing payments in an ERISA recapture account are plan assets
    2. Distinguish between the different types of ERISA recapture accounts
    3. Apply the prohibited transaction exemption to ERISA recapture accounts
    4. Determine fiduciary responsibilities with respect to revenue sharing payments
    5. Apply the Form 5500 reporting requirements to ERISA recapture accounts
    6. Determine what disclosures must be made with respect to ERISA recapture accounts
    7. Determine what plan language is necessary for ERISA recapture accounts
    8. Determine how to allocate leftover amounts

    Hardware System Requirements:

    • Windows 95, 98, NT 4.0, 2000, XP, Windows 7
    • Internet Explorer 4.01 or later, Netscape 4.08 or later, and set Internet browser to allow pop-up windows.
    • High-speed Internet connection.
    • Pentium 166+ MHz, 128MB RAM or more.
    • 1023 x 768 or higher display resolution.
    • Soundcard and Speakers.

    Software Requirements:

    Program related requests, questions, or concerns may be emailed to: