DOL Rule takes effect June 9

Last spring, the Department of Labor (DOL) published a rule that expands the definition of “fiduciary” under ERISA and the tax code.

On June 9, a key provision of the new rule – expanding what’s considered “investment advice” that makes someone a fiduciary – goes into effect. Under that revised definition, anyone who makes an individualized investment recommendation to an ERISA plan sponsor, participant or an IRA owner, must give advice that is completely free from conflicts unless an exemption is available.

One exemption is the new “best interest contract” (BIC) exemption, which will permit fiduciaries to make certain recommendations that would otherwise not be permitted, as long as they act in their customers’ best interest and earn no more than reasonable compensation, among other requirements.

The DOL has delayed application of several aspects of the BIC exemption until January 1, 2018, at which point full compliance with all of the exemptions’ conditions will be required for firms and advisers that choose to engage in transactions that would otherwise be prohibited under ERISA and the Internal Revenue Code.

Some of our services will be fiduciary acts under the new regulations and some will not. Either way, you’ll continue to receive the same exceptional quality and integrity of services, guidance and education.

DOL Fiduciary services grid

We’ll keep you informed

There is no action needed on your part at this time, and we’ll continue to provide updates along the way. Thank you for your continued support and partnership.

Insurance products, annuities and funding agreements issued by Voya Retirement Insurance and Annuity Company (“VRIAC”) One Orange Way, Windsor, CT 06095, which is solely responsible for meeting its obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services, LLC. Securities distributed by or offered through Voya Financial Partners, LLC (member SIPC) or other broker-dealers with which it has a selling agreement. Products and services may not be available in all states. All companies are members of the Voya Financial® family of companies.

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1Your third-party advisor will be the fiduciary in this circumstance; not Voya. Some third-party advisors may rely on exceptions from fiduciary status; check directly with your advisor to confirm their status.

2Advisory Services provided by Voya Retirement Advisors, LLC (VRA). Financial Engines Advisors L.L.C. acts as a sub advisor for VRA. Financial Engines Advisors L.L.C. (FEA) is a federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Neither VRA nor FEA provides tax or legal advice. Financial Engines® is a registered trademark of Financial Engines, Inc. All other marks are the exclusive property of their respective owners.

3Your third-party advisor or Morningstar will be the fiduciary in this circumstance; not Voya. Some third-party advisors may rely on exceptions from fiduciary status; check directly with your advisor to confirm their status.