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Fiduciary Governance
Despite a concerted effort to press for a win in court—and despite a judge’s observation that he deemed “total victory improbable, and recovery on the scale suggested by Plaintiffs highly improbable”—an excessive fee suit has been settled.
This suit—filed way back in 2017—involves allegations by a...
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The guidance in Notice 2021-48, issued July 30, pertains to changes to the funding rules that were made by Sections 9705 and 9706 of the American Rescue Plan Act of 2021 (ARPA).
Before the ARPA was enacted, the applicable minimum and maximum percentages for the 24-month average segment rates set...
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Which is better? It depends! That’s the verdict from an industry insider who compared and contrasted the two in a June 29 session of the 2021 NTSA Summit.
“A vexing issue,” said Mark Heisler, CEO of ADMIN Partners, LLC, of the question. Not only that, he said, it is “probably the number one...
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There is a broad array of plans from which an employer and plan sponsor can choose. In a 2021 NTSA Summit workshop session, an industry expert offered an overview.
Nathan Glassey, Vice President, National Benefit Services, set the table by looking at which employers can offer particular kinds of...
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It goes without saying that fiduciary duties that must be fulfilled. But there are some that are often overlooked, an industry expert warns.
“When a job becomes too familiar it’s easy to start taking things for granted,” writes Christopher Carosa in Fiduciary News. He adds that the belief that a...
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A couple of Saturdays back I discovered that one of my online accounts had been “hacked.”
The good news is that I “discovered” this via transaction emails confirming what appeared to be purchases—a half dozen of them… for various, small-ish (though not small) amounts… all about 4:00 a.m. on a...
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The Department of Labor (DOL) wants everyone to be attentive to cybersecurity protocols as a fiduciary responsibility, but there’s a higher expectation for those “running the systems.”
Tim Hauser, Deputy Assistant Secretary for National Office Operations at the DOL’s Employee Benefits Security...
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Speaking July 27 at the 2021 NAPA D.C. Fly-In Forum, the Acting Assistant Secretary for the DOL’s Employee Benefits Security Administration outlined the key areas the department is working on, including both cryptocurrency and cybersecurity issues.
While noting that he didn’t have much to share...
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Cautioning those looking to “game the system,” a senior Labor Department official affirmed July 27 that suggesting investments that could occur after a rollover is tantamount to recommending the rollover, and if it meets the rest of the five-part test will constitute fiduciary advice regardless of...
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A key factor in fulfilling the mission of a retirement plan is for the funds in the plan to be invested wisely. An investment committee can be helpful in making sure that happens; an industry insider offers tips on making that committee effective.
In “How To Make Your Investment Committee More...
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A coalition of representatives of the IRS, the software industry, tax preparers, payroll and tax financial product processors and state tax administrators are urging the use of multi-factor authentication.
Those representatives—numbering 62 state and private-sector offices as well as the IRS and...
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A participant-plaintiff has had her excessive fee/imprudent investment claims dismissed—for an interesting reason.
The plaintiff in this case (Lange v. Infinity Healthcare Physicians, SC, W.D. Wis., No. 3:20-cv-00737, 7/16/21) is Amanda Lange, a physician assistant who sued her employer (Wisconsin...
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(Another) group of participants in (another) multibillion-dollar 401(k) plan have sued plan fiduciaries for their decision to rely on fund options managed by their employer.
The plaintiffs in this case are Rita Kohari, John Radolec and Mohani Jaikaran, who, “individually and as representatives of...
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While Hughes involves 403(b) plans, the issues in it are effectively identical to those in the 401(k) fee litigation that has plagued our industry for nearly two decades.
On July 2, 2021, the Supreme Court agreed to review Seventh Circuit’s decision affirming dismissal of plaintiffs’ case for...
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On July 16 the IRS released Revenue Procedure (Rev. Proc.) 2021-30, and with it a series of updates that plan sponsors and those working to correct plan failures will find of interest, including two new benefit overpayment correction methods.
The IRS noted that the two new overpayment correction...
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Tempus Fugit! DB plans, DC plans and 403(b) annuity arrangements with calendar year plan years—the Form 5500 filing deadline for the 2020 plan year is not far off. In most years that would mean July 31—but not in 2021.
The form must be filed by the end of the seventh month after the end of a...
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Nondiscrimination testing has many facets. One of them concerns minimum participation. A recent blog entry provides a refresher concerning the minimum participation requirements.
In “Minimum Plan Participation: With or Without You,” consultant firm DWC in its blog looks at those requirements,...
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A pair of Republican senators have pushed back on “troubling statements by the companies that manage federal employees’ retirement investments suggesting those asset managers are not putting federal employees’ retirement security first.”
In a June 30 letter to David Jones, Acting Chairman of the...
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A new report reveals that more employees and plan sponsors are seeing increased value in retirement and other benefits.
Results from Sequoia Consulting Group’s 2021 Employee Experience Benchmarking Report (registration required) show that the pandemic had little effect on retirement plan...
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An excessive fee suit filed by a litigator new to the ERISA space makes a series of new, sweeping allegations (including the plan’s advisor and auditor) alongside some familiar challenges.
Indeed the plaintiffs’ arguments—if as yet unproven—are extraordinarily detailed, and tread ground(s) not...
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