Employer and other employee benefit plan sponsors, benefit plan committees and fiduciaries, and the broker-dealers, financial advisors, insurance agents and other plan service providers that provide investment-related platforms, advice, recommendations or other services for employee benefit plans need to reevaluate the fiduciary status of their service providers and begin restructuring as necessary their associated relationships, service provider commission or other compensation, service agreements and arrangements or other services in response to a new Regulatory Guidance Package (Rule) that explicitly classifies parties providing “covered investment advice” as fiduciaries subject to the conflict of interest and other fiduciary responsibility rules of the Employee Retirement Income Security Act (ERISA).
Supplementing existing precedent and EBSA’s already existing broad, functional definition of “fiduciary,” the Rule clarifies when individuals and entities that provide “covered investment advice” to plans, plan sponsors, fiduciaries, plan participants, beneficiaries and Individual Retirement Accounts (IRAs) and IRA owners are:
- Fiduciaries of the Plan or IRA for purposes of Title I of ERISA;
- Required to acknowledge their status and the status of their individual advisers as “fiduciaries” of the plan for purposes of ERISA;
- Accountable as fiduciaries for making prudent investment recommendations without regard to their own interests, or the interests of those other than the plan or plan participant or beneficiary that is the customer;
- Restricted to charging only “reasonable compensation” for their advice or service;
- Prohibited from making misrepresentations to their customers regarding recommended investments; and
- Prohibited from providing advice or making payments that involve any conflicts of interest prohibited by ERISA unless the arrangements fully complies with a prohibited transaction exemption issued by EBSA under ERISA Section 408 that otherwise complies with ERISA Section 404.
Concurrent with its adoption of final regulations implementing these new rules concerning investment advisors and their fiduciary responsibilities, the Rule also adopts certain new Prohibited Transaction Exemptions that define requirements that providers of covered investment advice and the plan fiduciaries that engage them generally will be required after April 7, 2017 to ensure are met for investment advisors to receive commission-based compensation for their services, to sell or purchase certain recommended debt securities and other investments out of their own inventories to or from plans and IRAs, or to receive compensation for recommending fixed rate annuity contracts to plans and IRAs.
Investment Advice Covered By The Rule
The final rule applies to “covered investment advice.” For purposes of the rule, “covered investment advice” generally includes:
- A recommendation to a plan, plan fiduciary, plan participant and beneficiary and IRA owner for a fee or other compensation, direct or indirect, as to the advisability of buying, holding, selling or exchanging securities or other investment property, including recommendations as to the investment of securities or other property after the securities or other property are rolled over or distributed from a plan or IRA;
- A recommendation as to the management of securities or other investment property, including, among other things, recommendations on investment policies or strategies, portfolio composition, selection of other persons to provide investment advice or investment management services, selection of investment account arrangements (e.g., brokerage versus advisory); or recommendations with respect to rollovers, transfers, or distributions from a plan or IRA, including whether, in what amount, in what form, and to what destination such a rollover, transfer, or distribution should be made.
Under the Rule, the fundamental threshold element in establishing the existence of fiduciary investment advice is whether a “recommendation” occurred. The Department has taken an approach to defining “recommendation” that is consistent with and based upon the approach taken by the Financial Industry Regulatory Authority (FINRA), the independent regulatory authority of the broker-dealer industry, subject to the oversight of the Securities and Exchange Commission (SEC).
The Rule specifies that a “recommendation” is a communication that, based on its content, context, and presentation, would reasonably be viewed as a suggestion that the advice recipient engage in or refrain from taking a particular course of action. Under the Rule, the more individually tailored the communication is to a specific advice recipient or recipients, the more likely the communication will be viewed as a recommendation.
The types of relationships that must exist for such recommendations to give rise to fiduciary investment advice responsibilities include recommendations made either directly or indirectly (e.g. through or together with any affiliate) by a person who:
- Represents or acknowledges that they are acting as a fiduciary within the meaning of ERISA or the Internal Revenue Code (Code);
- Renders advice pursuant to a written or verbal agreement, arrangement or understanding that the advice is based on the particular investment needs of the advice recipient; or
- Directs the advice to a specific recipient or recipients regarding the advisability of a particular investment or management decision with respect to securities or other investment property of the plan or IRA.
Also, the Rule only applies where a recommendation is provided directly or indirectly in exchange for a “fee or other compensation.” “Fee or other compensation, direct or indirect” means any explicit fee or compensation for the advice received by the person (or by an affiliate) from any source, and any other fee or compensation received from any source in connection with or as a result of the recommended purchase or sale of a security or the provision of investment advice services including, though not limited to, such things as commissions, loads, finder’s fees, and revenue sharing payments. A fee or compensation is paid “in connection with or as a result of” such transaction or service if the fee or compensation would not have been paid but for the transaction or service or if eligibility for or the amount of the fee or compensation is based in whole or in part on the transaction or service.
Investment Advice Not Covered By Rule
While the Rule reaches broadly, not all communications with financial advisers are covered fiduciary investment advice under the Rule. As a threshold issue, if the communications do not meet the definition of “recommendations” as described above, the communications will be considered non-fiduciary. In response to requests from commenters, and for clarification, the final rule includes some specific examples of communications that would not rise to the level of a recommendation and therefore would not constitute a fiduciary investment advice communication under the Rule.
When evaluating the applicability and effect of these exemptions, however, it is important to keep in mind that by adding the new Rule, EBSA seeks to make clear that individuals or organizations that engage in activities described in the Rule as covered investment advice are fiduciaries subject to these requirements. Since the Rule does not revoke existing EBSA fiduciary guidance or judicial precedent, service providers and other parties with discretionary authority or responsibility over employee benefit plans not covered by the Rule still could qualify as fiduciaries if their authority, responsibility or actions functionally causes them to fall within the definition of a fiduciary under these other pre-existing definitions of fiduciary status. Subject to this cautionary proviso, the following are some of the activities that the Rule identifies as activities that might fall outside the Rule’s covered investment activities in the manner required by the Rule:
- “Education” as defined and provided in accordance with the Rule;
- “General communications that a reasonable person would not view as an investment recommendation;”
- Simply making available a platform of investment alternatives without regard to the individualized needs of the plan, its participants, or beneficiaries if a plan fiduciary independent of the platform service provider actually decides what investment options are offered and the platform service provider also represents in writing to the plan fiduciary that they are not undertaking to provide impartial investment advice or to give advice in a fiduciary capacity; and
- Transactions with independent plan fiduciaries where the adviser knows or reasonably believes that the independent fiduciary is a licensed and regulated provider of financial services (banks, insurance companies, registered investment advisers, broker-dealers) or those that have responsibility for the management of $50 million in assets, and other conditions set forth in the Rule are met;
- Communications and activities made by advisers to ERISA-covered employee benefit plans in swap or security-based swap transactions when the swap transaction meets certain conditions set forth in the Rule, which EBSA designed in coordination with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to avoid conflicts between the Rule and the swap and security-based swap rules promulgated by those agencies under the Dodd–Frank Wall Street Reform and Consumer Protection Act; and
- Activities and communications of employees working in the payroll, accounting, human resources, and financial departments of the plan sponsor or its affiliated business who routinely develop reports and recommendations for the company and other named fiduciaries of the sponsors’ plans if the employees receive no fee or other compensation in connection with any such recommendations beyond their normal compensation for work performed for their employer.
New Prohibited Transaction Exemptions Published With Rule
Concurrent with its publication of the Rule, EBSA also is adopting the following new “Prohibited Transaction Exemptions to the otherwise applicable statutory list of prohibited conflict of interest transactions in ERISA Section 406 and the companion rules of the Internal Revenue Code (Code) applicable to qualified retirement plans.
Noncompliance with the Rule, including where necessary to avoid violating ERISA Section 406’s prohibited transaction prohibitions, by parties providing covered investment advice or the engagement or retention of such a service provider by an employer or other party exercising or with responsibility or authority to make that engagement carriers big legal risk. Advisers and financial institutions that don’t meet the BICE standards and other requirements of the Rule expose themselves to liability from breach of fiduciary duty claims under ERISA brought by ERISA plans, participants, and beneficiaries or in the case of IRAs or other non-ERISA plans, state law breach of contract or other state law claims brought by IRAs and other non-ERISA plans or accountholders. Likewise an employer, member of its management or other party responsible for or having authority to choose the service provider risks breaching its own fiduciary duties under ERISA by engaging a party that renders covered investment advice without complying with the Rule. In addition, to the extent that the engagement or activities of the service provider involves commission compensation payments, swaps or other activities that would constitute a prohibited conflict of interest under ERISA Section 406 not structured and conducted with an applicable prohibited transaction exemption, both the service provider and the fiduciary could bear personal liability for involving the plan or its assets in a prohibited transaction in violation of ERISA Section 406. For this reason, to help positions themselves to mitigate or defend against liability for such potential claims, advisors generally should take steps to ensure that the advisor can prove the advisor acted in their clients’ best interest by documenting their use of a reasonable process and adherence to professional standards in deciding to make the recommendation and determining it was in the customer’s best interest, and by documenting their compliance with the financial institution’s policies and procedures required by the Best Interest Contract Exemption.
“Best Interest Contract Exemption” (BICE)
ERISA and the Internal Revenue Code rules for qualified retirement plans generally prohibit individuals or entities providing fiduciary investment advice to plan sponsors, plan participants, and IRA owners to receive payments creating any of the listed statutory conflicts of interest listed in ERISA or the Code without a prohibited transaction exemption (PTE), employee benefit plan sponsors, benefit plan committees and other fiduciaries, and the broker-dealers, financial advisors, insurance agents and other plan service providers providing covered investment services to employee benefit plans also need to ensure that their compensation is structured to ensure that the compensation and other arrangements do not violate these prohibited transaction and conflict of interest prohibitions of the Code and ERISA, ERISA’s reasonable compensation rules, or the other requirements of ERISA.
Concerning ERISA Section 406’s party-in-interest and other conflict of interest requirements, EBSA issued in conjunction with its publication of the Rule a new “Best Interest Contract Exemption” (BICE), which provides a prohibited transaction exception that permits the payment of commission-based compensation to fiduciary investment advisors as long as the conditions specified in the BICE are met. Among other things, the BICE requires as a condition of the applicability of this exception that:
- The financial institution to acknowledge in writing fiduciary status for itself and its advisers;
- The financial institution and advisers to adhere to ERISA’s basic standards of impartial conduct, including giving prudent advice that is in the customer’s best interest, avoiding making misleading statements, and receiving no more than reasonable compensation;
- The financial institution to have policies and procedures designed to mitigate harmful impacts of conflicts of interest; and
- The financial institution to disclose specified information about their conflicts of interest and the cost of their advice.
The specified disclosures required to meet the conditions of the BICE include:
- Descriptions of material conflicts of interest;
- Descriptions of fees or charges paid by the retirement investor
- A statement of the types of compensation the firm expects to receive from third parties in connection with recommended investments;
- Notification that investors have the right to obtain specific disclosure of costs, fees, and other compensation upon request; and
- A requirement that a website must be maintained and updated regularly that includes information about the financial institution’s business model and associated material conflicts of interest, a written description of the financial institution’s policies and procedures that mitigate conflicts of interest, and disclosure of compensation and incentive arrangements with advisers, among other information. However, the BICE currently does not require that the website include individualized information about a particular adviser’s compensation.
Noncompliance with the Rule by parties providing covered investment advice or the engagement or retention of such a service provider by an employer or other party exercising or with responsibility or authority to make that engagement carriers big legal risk. Advisers and financial institutions that don’t meet the BICE standards and other requirements of the Rule expose themselves to liability from breach of fiduciary duty claims under ERISA brought by ERISA plans, participants, and beneficiaries or in the case of IRAs or other non-ERISA plans, state law breach of contract or other state law claims brought by IRAs and other non-ERISA plans or accountholders. Likewise an employer, member of its management or other party responsible for or having authority to choose the service provider risks breaching its own fiduciary duties under ERISA by engaging a party that renders covered investment advice without complying with the Rule. In addition, to the extent that the engagement or activities of the service provider involves commission compensation payments, swaps or other activities that would constitute a prohibited conflict of interest under ERISA Section 406 not structured and conducted with an applicable prohibited transaction exemption, both the service provider and the fiduciary could bear personal liability for involving the plan or its assets in a prohibited transaction in violation of ERISA Section 406. For this reason, to help positions themselves to mitigate or defend against liability for such potential claims, advisors generally should take steps to ensure that the advisor can prove the advisor acted in their clients’ best interest by documenting their use of a reasonable process and adherence to professional standards in deciding to make the recommendation and determining it was in the customer’s best interest, and by documenting their compliance with the financial institution’s policies and procedures required by the Best Interest Contract Exemption.
Principle Transactions Exemption
The “Principal Transactions Exemption” published in connection with the Rule provides an exemption from the prohibitions of ERISA Section 406 to allow investment advice fiduciaries to sell or purchase certain recommended debt securities and other investments out of their own inventories to or from plans and IRAs where the requirements of the Exemption are met. As with the Best Interest Contract Exemption, the Principle Transaction Exemption requires, among other things, that investment advice fiduciaries adhere to certain impartial conduct standards, including obligations to act in the customer’s best interest, avoid misleading statements, and seek to obtain the best execution reasonably available under the circumstances for the transaction.
Existing PTE For Fixed Rate Annuity Contracts
In connection with its adoption of the Rule, EBSA also is amending existing exemption, PTE 84-24, which provides relief for insurance agents and brokers, and insurance companies, to receive compensation for recommending fixed rate annuity contracts to plans and IRAs. As amended in connection with the Rule, the requirements of PTE 84-24 are modified to provide increased safeguards for retirement investors while still providing “more streamlined conditions” than those required to meet the Best Interest Contract Exemption. Consistent with its enthusiasm for encouraging the offering and adoption of life time income products to retirees over the past several years, EBSA says these more streamlined conditions of PTE 84-24 are appropriate to “facilitate access by plans and IRAs to these relatively simple lifetime income products.” More complex products, such as variable annuities and indexed annuities, will be able to be recommended by advisers and financial institutions under the terms of the Best Interest Contract Exemption.
Other PTE Exemptions Modified To Raise Requirements
The Department is amending other existing exemptions, as well, to ensure that plan and IRA investors receiving investment advice are consistently protected by impartial conduct standards, regardless of the particular exemption upon which the adviser and the fiduciary engaging that advisor intend to rely upon to avoid violating of ERISA 406.
While the compliance deadline for the new Rule is not until April 8, 2017, the relief from ERISA Section 406 offered by the new Exemptions announced in connection with the Rule’s publication generally became available when EBSA published them in connection with the Rule on April 8, 2016. As this relief could provide helpful protection against fiduciary challenges or exposures that some service providers might already face under already existing fiduciary precedent or guidance, many service providers involved in dealings with plan or IRA investments may wish to take steps to position themselves to claim protection under one of these new PTE Exemptions even before the Rule takes effect. When evaluating this option, some service providers should be aware of the availability of transitional relief that may make it easier for some service providers to claim relief under the new BICE or Principal Transactions Exemption between April 8, 2017 and January 1, 2018 (Transition Period). In addition, parties that contemplate wishing to take advantage of the relief offered by the new BICE or Principal Transactions Exemption may benefit from taking advantage of reduced requirements for meeting these conditions during the phase in Transition Period. During this Transition Period, EBSA still will require firms and advisers to adhere to the Exemptions’ impartial conduct standards, provide a notice to retirement investors that, among other things, acknowledges their fiduciary status and describes their material conflicts of interest, and to designate a person responsible for addressing material conflicts of interest and monitoring advisers’ adherence to the impartial conduct standards; however compliance with certain other requirements is waived until January 1, 2018. Of course, full compliance with all requirements of the applicable Exemptions will be required as of January 1, 2018.
Rule Requires Action By Plan Sponsors, Fiduciaries & Service Providers
The new Rule creates lots of new work both for advisors and other service providers in, as well as plan sponsors, plan administrative committees or other fiduciaries responsible for selection, retention and oversight of those providing these services. All such parties have much to do to fulfill their ERISA responsibilities by the April 8, 2017 deadline for compliance with the new Rule and to deal with other likely fallout from the new Rule.
Fallout for Covered Investment Advisors & Other Service Providers
Clearly, advisors, financial institutions and other service providers providing covered investment advice and others with involvement with investments or investment platforms have much work to do to prepare for the new rule. However, compliance with the Rule is not merely a service provider problem. Employer or other plan sponsors, plan fiduciaries or other responsible for the credentialing, selection, retention, and oversight of service providers dealing with investments also need to ensure that the party or parties responsible for these vendor dealings fulfills its own fiduciary responsibilities in dealing with vendors and service providers that may be impacted by these requirements.
Advisers and financial institutions that don’t meet the requirements of the new Rule expose themselves to liability from breach of fiduciary duty claims under ERISA brought by ERISA plans, participants, and beneficiaries or in the case of IRAs or other non-ERISA plans, state law breach of contract or other state law claims brought by IRAs and other non-ERISA plans or accountholders. Obviously, advisors, financial institutions and other service providers providing advice or having dealings or involvement with IRA or employee benefit plan investments, their selection or administration will want to review and update their relationships and their associated compensation, contracts, disclosures and other arrangements and processes in light of the new Rule. Clearly, those that could be considered to offer or provide covered investment advice need to start revising contracts, compensation, policies, practices and other arrangements in anticipation of the Rule. At the same time, the Rule also is likely to create work for certain service providers with involvement or dealings with investments that the service provider considers to fall outside of the Rule:
- To respond to changes in client requests for proposals, contracts or other due diligence in response to the Rule;
- To respond to changes in response to the Rule by covered investment advisors to reconfigure services, relationships and contracts in response to the Rule;
- To clarify and institutionalize and document communications by the uncovered service provider to clients and others of limits on the service provider’s services and capacity that are necessary or helpful to avoid or limit exposure of the service provider to coverage by or claims of liability arising out of the Rule; and/or
- Otherwise.
Fallout For Plan Sponsors & Plan Fiduciaries Selecting & Overseeing Service Providers
Employer or other plan sponsors, plan fiduciaries or other responsible for the credentialing, selection, retention, and oversight of service providers dealing with investments also need to anticipate and be prepared to deal the effects of adoption of the Rule on their responsibilities and risks as they relate to the selection, retention, contracting, compensation and other dealings with service providers impacted by the Rule.
The Rule’s explicit designation as fiduciaries of certain service providers that previously may have been characterized as providing services as non-fiduciaries, much less its tightening of requirements for the investment advisors that are covered fiduciaries, creates a host of new responsibilities and considerations for employers sponsoring plans and its members of management that select, retain, contract with and oversee these service providers.
Under ERISA, parties designated in writing or function exercising discretionary authority or responsibility for the selection, retention, compensation and oversight of fiduciary or other service providers generally are considered fiduciaries for purposes of carrying out these responsibilities and bear personal liability for prudently selecting, retaining and monitoring the service provider in accordance with ERISA.
To fulfill this fiduciary obligation, those involved in selecting and retaining investment advisors covered by the rules should expect to bear responsibility for ensuring that the covered investment advisor is engaged in compliance with the Rule and the otherwise applicable requirements of ERISA, including that the engagement and compensation of the selected investment advisor will not involve the plan or its assets in a prohibited conflict of interest listed in ERISA Section 406. Furthermore, failing to ensure that the engagement of an investment advisor does not violate these conflict of interest rules also exposes a sponsoring employer of a qualified plan to excise tax liability under the Code’s companion party-in-interest rules applicable to such plans.
Accordingly, whether the employer itself retains and directly exercises the discretionary authority to select and retain a service provider or appoints a committee or member of its staff to perform these responsibilities as a designated fiduciary, an accurate understanding of which service providers, taking into account the rule, now will be considered fiduciaries and the requirements of the Rule flowing from this status is essential to understand and make appropriate provisions to ensure that proper steps are taken to ensure that the Rule and ERISA’s other requirements for prudent credentialing, bonding, contracting, compensation, and other dealings with the service provider and to budget for the proper conduct of the activities needed to fulfill these obligations.
In light of these and other exposures and obligations, employer and other plan sponsors, plan fiduciaries and plan service providers alike all should start preparing to respond to the new Rule.
To help positions themselves to mitigate or defend against liability for such potential claims, each party generally will want to take prudent and well-documented steps to evaluate the fiduciary status of each applicable service provider, as well as its own fiduciary status, capacity, responsibility and other exposures in light of the new Rule. Since ERISA fiduciary status attaches functionally based on the functional facts and circumstances, sponsoring employers, as well as service providers generally will want to consider taking appropriate steps to document this analysis and other compliance and risk management efforts to avoid violations of the Rule, as well as to position themselves to defend against other claims and liabilities.
In all cases, each impacted party should make an effort to apply and retain evidence documenting its efforts including, in the case of all service providers, whether or not covered investment advisors under the Rule, their efforts to act in their clients’ best interest by documenting their use of a reasonable process and adherence to professional standards in deciding to make the recommendation and determining it was in the customer’s best interest, and by documenting their compliance with the financial institution’s policies and procedures and applicable requirements of the law.
About The Author
Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization, a Fellow in the American College of Employee Benefit Counsel, past Group Chair, past Welfare Benefit Committee Chair, and Current Defined Contribution Plan Co-Chair of the American Bar Association (ABA) RPTE Section Employee Benefits Group, Vice Chair of the ABA Tort & Insurance Practice Section Employee Benefits Committee, former Chair of the ABA Health Law Section Managed Care & Insurance Interest Group, a past ABA Joint Committee on Employee Benefits Council Representative Cynthia Marcotte Stamer is a practicing attorney, regulatory and public policy advocate, author, lecturer and industry and public policy thought leader recognized as a “Top” attorney in employee benefits, labor and employment and health care law for her more than 28 years’ of leading edge experience nationally and internationally providing practical and effective advice and representation to management.
Ms. Stamer’s legal and management consulting work throughout her career has focused on helping organizations and their management understand and use the law and process to manage people, performance, compliance, operations and risk. Highly valued for her rare ability to find pragmatic client-centric solutions by combining her detailed legal and operational knowledge and experience with her talent for creative and pragmatic problem-solving, Ms. Stamer helps public and private, domestic and international businesses, governments, and other organizations and their leaders manage their employees, vendors and suppliers, and other workforce members, customers and other’ performance, compliance, compensation and benefits, operations, risks and liabilities, as well as to prevent, stabilize and cleanup workforce and other legal and operational crises large and small that arise in the course of operations.
Ms. Stamer works with businesses and their management, employee benefit plans, governments and other organizations deal with all aspects of human resources and workforce management operations and compliance. She supports her clients both on a real time, “on demand” basis and with longer term basis to deal with daily performance management and operations, emerging crises, strategic planning, process improvement and change management, investigations, defending litigation, audits, investigations or other enforcement challenges, government affairs and public policy.
Well known for her extensive work with health care, insurance and other highly regulated entities on corporate compliance, internal controls and risk management, her clients range from highly regulated entities like employers, contractors and their employee benefit plans, their sponsors, management, administrators, insurers, fiduciaries and advisors, technology and data service providers, health care, managed care and insurance, financial services, government contractors and government entities, as well as retail, manufacturing, construction, consulting and a host of other domestic and international businesses of all types and sizes.
As a key part of this work, Ms. Stamer uses her deep and highly specialized health, insurance, labor and employment and other knowledge and experience to help employers and other employee benefit plan sponsors; health, pension and other employee benefit plans, their fiduciaries, administrators and service providers, insurers, and others design legally compliant, effective compensation, health and other welfare benefit and insurance, severance, pension and deferred compensation, private exchanges, cafeteria plan and other employee benefit, fringe benefit, salary and hourly compensation, bonus and other incentive compensation and related programs, products and arrangements.
She is particularly recognized for her leading edge work, thought leadership and knowledgeable advice and representation on the design, documentation, administration, regulation and defense of a diverse range of self-insured and insured health and welfare benefit plans including private exchange and other health benefit choices, health care reimbursement and other “defined contribution” limited benefit, 24-hour and other occupational and non-occupational injury and accident, ex-patriate and medical tourism, onsite medical, wellness and other medical plans and insurance benefit programs as well as a diverse range of other qualified and nonqualified retirement and deferred compensation, severance and other employee benefits and compensation, insurance and savings plans, programs, products, services and activities. In these and other engagements, Ms. Stamer works closely with employer and other plan sponsors, insurance and financial services companies, plan fiduciaries, administrators, and vendors and others to design, administer and defend effective legally defensible employee benefits and compensation practices, programs, products and technology. She also continuously helps employers, insurers, administrative and other service providers, their officers, directors and others to manage fiduciary and other risks of sponsorship or involvement with these and other benefit and compensation arrangements and to defend and mitigate liability and other risks from benefit and liability claims including fiduciary, benefit and other claims, audits, and litigation brought by the Labor Department, IRS, HHS, participants and beneficiaries, service providers, and others. She also assists debtors, creditors, bankruptcy trustees and others assess, manage and resolve labor and employment, employee benefits and insurance, payroll and other compensation related concerns arising from reductions in force or other terminations, mergers, acquisitions, bankruptcies and other business transactions including extensive experience with multiple, high-profile large scale bankruptcies resulting in ERISA, tax, corporate and securities and other litigation or enforcement actions.
Ms. Stamer also advises and represents clients on OCR and other HHS, Department of Labor, IRS, FTC, DOD and other health care industry investigation, enforcement and other compliance, public policy, regulatory, staffing, and other operations and risk management concerns. In the course of this work, Ms. Stamer has accumulated an impressive resume of more than 28 years’ of experience advising and representing clients on Title I and other ERISA fiduciary responsibility concerns including assisting and advising plan sponsors, plan fiduciary and plan service providers to design and administer fiduciary and other compliance and risk management policies and practices, conducting investigations of potential fiduciary or other breaches, and serving as special counsel, advising and representing these and other clients in connection with EBSA, IRS, SEC and other governmental audits, investigations and enforcement actions; in private disputes and litigation regarding plan investments or other fiduciary concerns between plan participant and beneficiaries, plans, plan fiduciaries, plan sponsors and plan service providers; or both.
Ms. Stamer also is deeply involved in helping to influence health care, pension, social security, workforce, insurance and other policies critical to the workforce, benefits, and compensation practices and other key aspects of a broad range of businesses and their operations. Deeply involved in both U.S. statutory and regulatory pension and health care reform throughout her career, Ms. Stamer both helps her clients respond to and resolve emerging regulations and laws, government investigations and enforcement actions and helps them shape the rules through dealings with Congress and other legislatures, regulators and government officials domestically and internationally. A former lead consultant to the Government of Bolivia on its Social Security reform law and most recognized for her leadership on U.S. health and pension, wage and hour, tax, education and immigration policy reform, Ms. Stamer works with U.S. and foreign businesses, governments, trade associations, and others on workforce, social security and severance, health care, immigration, privacy and data security, tax, ethics and other laws and regulations. Founder and Executive Director of the Coalition for Responsible Healthcare Policy and its PROJECT COPE: the Coalition on Patient Empowerment and a Fellow in the American Bar Foundation and State Bar of Texas. She also works as a policy advisor and advocate to health plans, their sponsors, administrators, insurers and many other business, professional and civic organizations.
Author of the thousands of publications and workshops these and other employment, employee benefits, health care, insurance, workforce and other management matters, Ms. Stamer also is a highly sought out speaker and industry thought leader known for empowering audiences and readers. Ms. Stamer’s insights on employee benefits, insurance, health care and workforce matters in Atlantic Information Services, The Bureau of National Affairs (BNA), InsuranceThoughtLeaders.com, Benefits Magazine, Employee Benefit News, Texas CEO Magazine, HealthLeaders, Modern Healthcare, Business Insurance, Employee Benefits News, World At Work, Benefits Magazine, the Wall Street Journal, the Dallas Morning News, the Dallas Business Journal, the Houston Business Journal, and many other publications. She also has served as an Editorial Advisory Board Member for human resources, employee benefit and other management focused publications of BNA, HR.com, Employee Benefit News, InsuranceThoughtLeadership.com and many other prominent publications. Ms. Stamer also regularly serves on the faculty and planning committees for symposia of LexisNexis, the American Bar Association, ALIABA, the Society of Employee Benefits Administrators, the American Law Institute, ISSA, HIMMs, and many other prominent educational and training organizations and conducts training and speaks on these and other management, compliance and public policy concerns.
Ms. Stamer also is active in the leadership of a broad range of other professional and civic organizations. For instance, Ms. Stamer presently serves on an American Bar Association (ABA) Joint Committee on Employee Benefits Council representative; Vice President of the North Texas Healthcare Compliance Professionals Association; Immediate Past Chair of the ABA RPTE Employee Benefits & Other Compensation Committee, its current Welfare Benefit Plans Committee Co-Chair, on its Substantive Groups & Committee and its incoming Defined Contribution Plan Committee Chair and Practice Management Vice Chair; Past Chair of the ABA Health Law Section Managed Care & Insurance Interest Group and a current member of its Healthcare Coordinating Council; current Vice Chair of the ABA TIPS Employee Benefit Committee; the former Coordinator and a Vice-Chair of the Gulf Coast TEGE Council TE Division; on the Advisory Boards of InsuranceThoughtLeadership.com, HR.com, Employee Benefit News, and many other publications. She also previously served as a founding Board Member and President of the Alliance for Healthcare Excellence, as a Board Member and Board Compliance Committee Chair for the National Kidney Foundation of North Texas; the Board President of the early childhood development intervention agency, The Richardson Development Center for Children; Chair of the Dallas Bar Association Employee Benefits & Executive Compensation Committee; a member of the Board of Directors of the Southwest Benefits Association. For additional information about Ms. Stamer, see www.cynthiastamer.com, or http://www.stamerchadwicksoefje.com the member of contact Ms. Stamer via email here or via telephone to (469) 767-8872.
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