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Changing ERISA's Disqualified Person Criterion

Overview

2.0 Credits
IN-PERSON

The Employee Retirement Income Security Act of 1974 invested the Secretaries of Labor and Treasury with the power to change ERISA’s disqualified person criterion to something less than fifty percent. The economic significance of such legislative regulatory empowerment has yet to be addressed in the retirement plan literature. This webcast fills that void.

 

Syllabus

 

Lesson 1.

Introduction

Lesson 2.

The Disqualified Person Criterion

Lesson 3.

Private Foundation Lessons

Lesson 4

Reducing the Criterion

Lesson 5.

Who’s Better Off Versus Worse Off   

Lesson 6

Forestalling Executive Action

Lesson 7

Conclusion

 

**This course is approved by the IRS. The submission of a completed request form, found under the materials tab, is required for credit.

Objectives

*Recognize how to correctly comply with Congress’s Section 4975 impounded management and investment risk diversification policy requirements  

*Recognize correctly why private foundation risk diversification risk diversification policy requirements are more stringent than retirement plan risk diversification policy requirements  

*Recognize correctly the economic consequences of reducing the Section 4975(e)(2)(G) disqualified person criterion is to require higher and higher levels of risk diversification  

*Recognize correctly continual reduction in the Section 4975(e)(2)(G) disqualified person criterion eventually leads to a requirement that policy compliant risk diversification is defined by public securities portfolio risk diversification 

*Recognize correctly continual reduction in the Section 4975(e)(2)(G) disqualified person criterion favors the ICMC because it protects existing money supply pressures or creates higher money supply pressures on capital market securities  

*Recognize correctly Section 4975 impounded management and investment risk diversification policy compliance is the best defense against executive action to reduce the Section 4975(e)(2)(G) disqualified person criterion

Major Topics

*Allocation of responsibilities between DOL and IRS pursuant to Section 105 of Reorganization Plan No. 4 of 1978  

*Either the Secretary of Labor or the Secretary of the Treasury has the right, power, and authority to change the Section 4975(e)(2)(G) disqualified person criterion to less than 50 percent  

*Section 4975(e)(2)(G) disqualified person criterion implications for Congress’s retirement plan management and investment risk diversification policies  

*General and specific Section 4975 prohibited transaction proscriptions   Private foundation management and investment risk diversification policy requirements  

*Economic efficient reduction in the Section 4975(e)(2)(G) disqualified person criteria  

*Who becomes better off versus who becomes worse off by a reduction in the Section 4975(e)(2)(G) disqualified person criterion  

*The role of the Informal Capital Market Cartel in influencing the legislative empowerment to change the 50 percent disqualified person criterion  

*Measures to take to avoid a legislative rule change in the Section 4975(e)(2)(G) disqualified person criterion

Prerequisite

This webcast is an intermediate continuing education webcast. It is assumed the webcast participant has achieved the following related webcasts in advance of this webcast: *Retirement Plan Management and Investment Risk Diversification Standards *Management and Investment Risk Diversification Indices *Prohibited Transaction Chinese Walls *Problematic Self-Directed Retirement Plan Activities

Advanced Preparation

None
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