Alerus Financial Corporation · NASDAQ:ALRS
Alerus Financial — Investor Presentation (August 2020)
12 slides from Alerus Financial's investor presentation, Aug 17, 2020
Slide 1: DOL Fiduciary Rule 3.0 and the Effects of the Next Election
DOL Fiduciary Rule 3.0 and the Effects of the Next Election Bradford Campbell Faegre Drinker Biddle & Reath LLP Faegre Drinker Biddle & Reath LLP
Slide 2: Hon. Bradford P. Campbell
Hon. Bradford P. Campbell Partner (202) 230-5159 Bradford.Campbell@faegredrinker.com Mr. Campbell concentrates his practice in Employee Benefits advice, specializing in ERISA Title I issues, including fiduciary conduct and prohibited transactions. He also serves as an expert witness in ERISA litigat
Slide 3: A Whirlwind of Regulations Facing Electoral Uncertainty
A Whirlwind of Regulations Facing Electoral Uncertainty • Trump Administration racing to get rules done before November Election: DOL ESG Rule, proposed June 30 DOL Fiduciary Rule, proposed July 7 DOL SECURE Act Lifetime Income, WH review June 29 DOL Proxy Voting Rule, WH review July 13 DOL SEC
Slide 4: Vice President Biden Proposals
Vice President Biden Proposals • Eliminate Social Security Earnings Cap • Automatic 401(k) for those who don’t have a workplace plan • Caregiver Catchup contributions • “Equalize [retirement] benefits across the income scale” • Eliminate Reg BI? • Reinstate DOL Fiduciary Rule? • Role of Sens. Warren
Slide 5: ESG Rule Does Not Prohibit ESG in ERISA Plans
ESG Rule Does Not Prohibit ESG in ERISA Plans • Proposal boils down to five main issues: 1. Permits ESG as DIAs if otherwise prudent. 2. Permits “pecuniary” ESG factors—material to analysis under generally accepted investment theories. 3. Permits ESG factors to be tie-breaker for “economically indis
Slide 6: DOL Fiduciary Rule 3.0
DOL Fiduciary Rule 3.0 • Two parts: class exemption, new rollover guidance • Class Exemption—as expected, modeled on Reg BI, permits reasonable compensation for investment advice fiduciaries, useful for rollovers, comments end Aug 6. • New Guidance—not a rule, already in effect. Reinterprets 1975 fi
Slide 7: What's a Pooled Employer Plan (PEP)?
What’s a Pooled Employer Plan (PEP)? • Individual account plan with 2+ adopting employers—no 403(b), 457(b), or DB plans. • PEP document makes Pooled Plan Provider (PPP) named fiduciary. • PEP must designate one or more other trustees. • PEP must have “reasonable, diligent, and systematic” procedure
Slide 8: What's a Pooled Plan Provider?
What’s a Pooled Plan Provider? • In practice, it’s the professional service provider offering the PEP to employers. • Named fiduciary (named in plan document) • ERISA Sec. 3(16) plan administrator (named in document) • “Person responsible to perform all administrative duties” necessary to ensure the
Slide 9: SECURE Act Annuity Provisions
SECURE Act Annuity Provisions: • Portability of lifetime income distribution if plan no longer offers option and direct rollover or direct distribution to individual if annuity contract. • DC plan statement annual show lifetime income projection (annuity): DOL has until 12/20 to do interim final rul
Slide 10: DOL Enforcement Priorities
DOL Enforcement Priorities • DOL’s EBSA is a regulatory and enforcement agency. In FY 2019, 1,146 civil investigations closed and $2.5 billion in monetary results—67% violation rate. • Participant Inquiries—Nearly 170,000 participants called DOL, informal resolution yielded $510 million in benefits,
Slide 11: Thank you
Thank you Bradford P. Campbell +1 (202) 230-5159 bradford.campbell@faegredrinker.com 11 July 2020 - For Institutional/Plan Sponsor Use Only
Slide 12: Disclaimer
Disclaimer The views expressed in this presentation are the speaker’s own and not necessarily those of Faegre Drinker, or anyone else. This presentation is for general information only and is not intended to provide investment, tax or legal advice or recommendations for any particular situation or t
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