News & Information

 

FEATURED PRODUCT

5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.

Learn More »

CCH® PENSION — 8/10/11

SEC Lifts Registration Threshold For Pension Advisers To $200,000

from Spencer’s Benefits Reports: In order to register with the Securities and Exchange Commission (SEC) and avoid state registrations, pension consultants must now be advising plans with at least $200 million in assets, rather than the previous $50 million in assets previously required. This new $200 million threshold is in SEC Reg. Sec. 275.203A-2, which was published in the July 19 Federal Register. It is effective Sept. 19, 2011.

As explained in the preamble, “Pension consultants typically do not have ‘assets under management,’ but we [the SEC] have required these advisers to register with us because their activities have a direct effect on the management of large amounts of pension plan assets. As a result of this amendment, advisers currently relying on the pension consultant exemption [who are] advising plan assets of less than $200 million may be required to withdraw from SEC registration and register with one of more states.”

Comments supported the proposal including one that said “that the new $200 million threshold would continue to ensure that the activities of a pension consultant registered with the SEC are significant enough to have an impact on national markets.”

Relief is provided by SEC Reg. Sec. 275.203A-2(d) permitting advisers who are required to register in 15 or more states to register with the SEC instead of the state securities authorities. The final rule lowered this threshold from 30 states to 15 states.

Pension consultants who do not meet the $200 million threshold, but did so before the Sept. 19, 2011, effective date will be required to withdraw their registration from the SEC within 180 days of the adviser’s fiscal year end.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

Visit our News Library to read more news stories.