Benefit — rollover fiduciary stance
What the annual retrospective-review record actually saves you
PTE 2020-02 requires the firm to maintain policies and conduct an annual retrospective review. When the AI recommendation engine drives rollover recommendations, that review needs a fact set. The Snapshot is that fact set.
The three moments where it matters
- DOL Employee Benefits Security Administration inquiry. The EBSA can request the annual retrospective-review documentation directly. Independent-verifier evidence of AI recommendation-surface monitoring is the specific record type EBSA staff can score.
- IRS excise-tax assessment on prohibited transactions. A finding that a rollover recommendation was not in the Retirement Investor's best interest can trigger IRS §4975 excise tax on the disqualified party (the firm or the associated person).
- Private ERISA action by the Retirement Investor. ERISA gives Retirement Investors a private right of action for damages. Independent-verifier evidence bounds the exposure window.
Dollar frame
IRS §4975 excise tax: 15% first-tier tax on the amount of the prohibited transaction, up to 100% if not corrected within the taxable period. On a large aggregate rollover book, exposure can run into the hundreds of thousands or more.
Private ERISA action: individual damages + attorney fees + potential class treatment. Class-adjacent risk on client-group differential patterns adds an outer bound similar to Advisers Act §206 exposure.
Preventive stance value: $499 Snapshot documents the annual retrospective-review basis. The excise-tax assessment window and private-action damages window both tighten to the identified drift period.
Who at your org cares
- Chief Compliance Officer — PTE 2020-02 program documentation
- Rollover-specialist advisors — personal-liability exposure on individual rollovers
- Outside ERISA counsel — retrospective-review structure + private-action defense
- CFO — excise-tax + damages reserve
What "having it" looks like
Green: Annual retrospective-review file cites the Snapshot record. EBSA inquiry opens with a document set that answers the question. Excise-tax assessment window is bounded.
Red: Annual retrospective-review file cites the platform vendor's dashboard. EBSA staff know the answer is structurally weak. Excise-tax assessment window defaults to the full rollover-flow window.
$499. 3 business days.
The retrospective-review record PTE 2020-02 requires you to be able to produce.
Buy $499