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Fiduciary Governance
A new suit has been filed, alleging “reckless actions in allowing an unknown individual to prey on and steal hundreds of thousands of dollars from the retirement savings of the Plaintiff…”
More specifically, the suit was filed on behalf of Heide Bartnett, 59, a retired former employee of Abbott...
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A federal judge has found that a provider breached its fiduciary duty of overseeing its own 401(k) by failing to monitor proprietary funds and its recordkeeping expenses—though it was not obligated to consider options other than mutual funds.
The suit was filed in October 2018 by plaintiffs...
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There are many factors with which employers, plan sponsors and plan administrators must contend that are having immediate and profound effects on retirement plans. But even amidst such maelstroms, it can be useful to keep in mind some of the structural aspects of a plan that set its tone and keep...
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The largest U.S. corporate defined benefits (DB) plans took a hit in the first quarter of 2020, according to a recent report.
The aggregate funded status of the 376 Fortune 1000 companies sponsoring DB plans by the end of first quarter of 2020 stood at 79%, an eight percentage point drop from...
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I have long been enamored of so-called “end of the world” fiction—the kind where society as we know it is confronted by the aftermath of some cataclysmic event. And while “this” doesn’t seem to be that—there’s likely to be some significant changes ahead.
Here’s a half dozen to consider…
More...
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Amidst the ongoing COVID-19 crisis, the American Retirement Association has been working diligently to push for commonsense solutions that provide Americans with the funds necessary to provide for themselves and their families while at the same time protect the private employer-sponsored retirement...
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If you’ve been wondering about the potential impact of the U.S. Supreme Court’s recent “actual knowledge” decision, wonder no more.
That Intel ruling, handed down in a unanimous ruling in February, held that you don’t need more than a dictionary to know the meaning of “actual knowledge” when it...
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The spread of COVID-19, and the measures to keep it under control, have caused dramatic changes in the financial environment underpinning retirement plans. A March 19 Plan Sponsor Council of America webinar discussed what it means for plans and participants.
In “COVID-19 Market Impact Analysis:...
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Once again, a prudent process has won the day in court for retirement plan fiduciaries.
In the case at hand, plaintiff Bonnie Birse, a participant in the CenturyLink Dollars & Sense 401(k) Plan since 2012, and invested in the plan’s 2015 Target Date Fund, argued that CenturyLink’s...
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There are few things more annoying in my daily existence than those ubiquitous pop-up service agreement acknowledgements.
I say annoying because they are inevitably long and “lawyerly”; there’s no way that they can readily be read (much less absorbed) in the medium in which they are presented;...
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There may be a whole new focus emerging with regard to excessive fee litigation.
Last week a reader shared with us an “Excessive Fee Questionnaire Regarding Defined Contribution Plans.” This document was reportedly presented to a plan sponsor of a $170 million plan—from its property and...
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Knowing, and fulfilling, fiduciary duties are critical to effective plan administration, and their importance will not be lessening. A recent blog post suggests that investment committees can be helpful in meeting those responsibilities and offers tips on building or strengthening one.
In “...
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By all accounts last week was pretty bad for the market. All of the major indices fell by more than 10%, and the business news outlets all highlighted that it was the markets’ worst weekly decline since October 2008.
Comparisons to the financial crisis that began in October 2007 are as...
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In a unanimous ruling, the nation’s highest court says you don’t need more than a dictionary to know the meaning of “actual knowledge” when it comes to participant awareness regarding 401(k) disclosures.
‘Tell’ Tale
The decision came in a case involving Intel’s 401(k), its decision to...
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The Massachusetts Secretary of the Commonwealth has finalized a new fiduciary conduct standard, one that, consistent with the recommendation of the American Retirement Association, acknowledges ERISA’s preemption.
Contending that the SEC’s Regulation Best Interest falls short, Secretary William...
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The image of an older couple strolling the beach is fast joining the “museum of retirement clichés,” along with traditional approaches to retirement planning, a new study suggests.
Retirement is no longer about reaching a certain age but is more of a mindset, and American workers close to...
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The newest presidential candidate for the Democratic party has outlined plans for Social Security, a “public option” 401(k), and a new (old) fiduciary rule.
Claiming that “most of the benefits of tax breaks for retirement savings go to wealthier saver,”[i] Mike Bloomberg’s “Retirement Security...
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The Security and Exchange Commission (SEC) is putting sales of 403(b) plans to teachers under its scrutiny. Where did this come from? And what does it mean?
In June 2019, the SEC announced two new initiatives that it said built on its ongoing efforts to protect retail investors: The Teachers’...
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A federal appellate court has adopted the fiduciary test established in another circuit – but has it come to a different conclusion?
The Eighth Circuit disagreed (Rozo v. Principal Life Ins. Co., 8th Cir., No. 18-3310, 2/3/20) with the district court’s granting of summary judgment in favor of...
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A large money manager and recordkeeper is pushing back on allegations of self-dealing with regard to the investments and administration of its own 401(k) plan.
This time it’s Prudential’s $8 billion plan (and approximately 45,000 participants as of 2018) who were sued last November by former...
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