(ERISA) Employment Retirement Income Security Act: Analysis Paper


(ERISA) Employment Retirement Income Security Act Memorandum Prompt The post below/attached is about the Fiduciary Duty of Investment advisers and firms. As a Pension consultant, please review and write a substantive essay concerning the Fiduciary Duty of Investment advisers and firms that continues the discussion with your classmate by promoting an in-depth evaluation of their […]

ERISA Analysis

Commendably, the principal of the investment firm is privy to the Employment Retirement Income Security Act (ERISA) law and the obligations it manifests on companies. The investment adviser argues that the company has remained compliant for several reasons. Firstly, he declares the investment company as law-abiding thanks to the fiduciary duty compliance, expression of caution when administering investment plans, and provision of investment and pension advice for a fee. Moreover, the investment company has implemented other ERISA relevant elements including a written plan that guides its daily operations and outlines the benefits framework, a record-keeping system that tracks the movement of money into and out of the retirement plans, a trust fund. The CEO intends to continue abiding by ERISA law by operating the pension plans with the clients’ and beneficiaries’ interests at heart.[1] In addition, the principal recommends that the company conduct its operations with both prudence and caution so as to prevent investment losses.

Even though the principal’s course of action, driven by the spirit to remain ERISA compliant, deserves applauds, there are several other approaches that can make the investment company even more ERISA compatible. Following the directive by the Department of Labor (DOL) to expand the term investment advice, the company should open its doors to make plan information easily assessable to its clients.[2] Submitting hard copies to the customers’ workplaces and periodic mailings could adequately serve the purpose of disclosure. What is more, the company can start outlining the claims procedure and how it applies to different participants. In the event that pension claims are applied, clients can easily tell if their situation puts them at a better position for either a grant or a denial. The investment company should also file informational returns such as a summary plan with the IRS and the DOL. The requirement of reporting lets the participants remain aware of the dynamics affecting their coverage. When the additional course of action is implemented, the investment company leaves no room for ERISA violation.





  1. Employee Retirement Income. Security Act of 1974
  2. “The final rule,” 81 Federal Register, April 8, 2016


[1] Employee Retirement Income. Security Act of 1974


[2] “The final rule,” 81 Federal Register, April 8, 2016


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