Request a Proposal

Annuity Selection Safe Harbor Regulation

In 2008, the DOL issued regulation for defined contribution plan fiduciaries that included safe harbor conditions for the selection and monitoring of annuity providers and annuity contracts for benefit distributions. In response, questions have arisen regarding how to reconcile the “time of selection” standard in which prudence of a fiduciary decision is evaluated under ERISA based on the information available at the time of selection. According to a recent DOL Field Assistance Bulletin, the time of selection is defined as the time that the annuity provider and contract are selected for benefit distribution to a particular participant or beneficiary, or the time that the annuity provider is selected to provide annuities as a distribution option for the plan.

www.planadviser.com; July 13, 2015.