On May 18, the Court held in Tibble v. Edison International that Employee Retirement Income Security Act (ERISA) fiduciaries have a continuing duty to monitor investment options and that plan participants have six years from the date of an alleged violation of that duty to file a lawsuit against the plan's fiduciaries. The employees in this lawsuit argued that the firm's 401(k) offered high cost shares of funds instead of lower cost options. Employees claim that they had to invest in retail funds, whose expenses are higher than what are commonly known as institutional class funds. The outcome on the case is expected to put more pressure on the employers to regularly review their plans' fees, as well as to negotiate with financial institutions to reduce their fees.

This is a simple reminder and validation that a 401(k) plan sponsor has an ongoing fiduciary duty to the plan's beneficiaries. That ongoing fiduciary duty means structuring the retirement plans and developing a process to protect the best interests of those beneficiaries. Protecting the best interests of plan beneficiaries, among other things, includes monitoring trust investments and removing imprudent ones.

 
Some good practices to bear in mind for plan fiduciaries include:
 

• Determine and document which parties are responsible for investment decisions (administrative committee, board of directors, investment committee, others)
• Review and update the investment policy statement
• Follow the policy for ongoing review and monitoring procedures for investment options and fees
• Consider fiduciary training
• Keep detailed documentation
• Review effectiveness of any outside investment advisor

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UHY LLP invites you to attend a webcast of "ACA best practices" in which we'll provide actionable insights on how to comply with ongoing ACA requirements. A panel of experts will discuss top ACA employer challenges, three main areas to "button up" (Pay or Play?, measurement periods / look back, 6056 reporting requirements), and solutions (compliance options, 1094/95-B & C filing). Who should attend? Fully insured employers with 50+ full time employees and all self-funded employers. Two sessions are available for your convenience: Thurs., June 18, 11:00 AM EST or Thurs., June 25, 1:00 PM EST. Click the links provided to register for your preferred session. 

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As reported in Crain's Detroit Business in late March, UHY Advisors' Corporate Finance team presented private equity firm O2 Investment Partners LLC with the potential acquisition of a technology client, PC Treasures, Inc. At first Jay Hansen, managing partner of O2, had a hard time grasping PC's business. PC Treasures is a multi-channel distributor of licensed multimedia bundles and cutting-edge computer, tablet and smartphone accessories, and other specialty products. It took a while for Hansen and his staff to understand PC's niche, causing the deal to take longer, but the light finally went on.

Due diligence taught Hansen and Todd Fink, another O2 managing partner, that there was a profit to be made in bundling. They also learned that they were compatible with the co-founders of PC Treasures. The deal was especially complex because PC has a unique business model. They were launching a new major product and it was the middle of their busiest season. It was also imperative that the "family" culture remained intact to maintain great customer relationships built on mutual trust and quickly capitalize on new market opportunities.

The unique nature of the transaction forced the advisors on the deal to come up with creative solutions that would meet the needs of all parties. Despite the complications, the deal went smoothly and PC's co-founders Brian Austin and Les Thomas agreed to invest some of the proceeds from the sale back into the company.

The deal closed in November 2014, PC Treasures busiest season, and was awarded "Deal of the Year: Best Deal under $100 Million" by Crain's Detroit Business. UHY's team played a crucial role in facilitating the transaction. Operating under Steve McCarty; Aaron Witalec, Bob Kendall and Alex Conti acted as sell side advisors on the deal.
 

Careers at UHY

• Audit Manager, 7+ years of experience, manufacturing experience is highly preferred
• Audit Manager, 7+ years of experience, SEC experience is highly preferred
• Audit Accountant, 2-10 years of experience working with municipalities
• Audit Senior Staff Accountant, 2-4 years of experience
• Internal Audit Risk & Compliance Manager, 7+ years of experience
• R&D Tax Specialist, 7+ years of experience
• Tax Manager, 7-10 years of experience, marketing experience is required
• Tax Senior Consultant, 4-5 years of experience, Big 4 experience is required
• Tax Senior Accountant, 5-7 years of experience, CPA required
• Director of Litigation, testifying experience required municipalities
• Senior Associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred

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