Fiduciary Governance

Is the litigation tide turning in favor of plan sponsors? That’s a growing perception but one contradicted by data, at least when it comes to dismissal motions.  Fiduciary liability insurance provider Euclid Fiduciary found that, as of the end of July, plan sponsors “are only winning approximately... READ MORE

Is it ESG for me but not for thee?  Republicans heavily criticized environmental, social, and governance (ESG) investing policies in recent months, arguing it does little more than serve a woke agenda at the expense of investment returns.  For instance, they say divestment from fossil fuels... READ MORE

Until recently, ERISA seldom appeared in national headlines—let alone the Speaker of the House making an Instagram video about it. But many Members of Congress have proclaimed that the new Department of Labor (DOL) prudence regulation allows investment managers for ERISA plans to “push a political... READ MORE

Principal Deputy Assistant Secretary for the DOL’s Employee Benefits Security Administration (EBSA) Ali Khawar on July 25 shared with delegates at the 2023 NAPA D.C. Fly-In Forum the key priorities of the department, including new guidance on SECURE 2.0, an update to the fiduciary rule, and... READ MORE

A new excessive fee suit challenges the imprudent selection of share classes, the poor selection of a stable value offering AND exorbitant recordkeeping fees. Here we have one participant-plaintiff Robert  Humphries suing based on the actions (or lack thereof) of the fiduciaries of the $700... READ MORE

A “painstakingly negotiated global Settlement” of some $124 million involving multiple suits (and the involvement of the Labor Department) has been reached in a long-standing ERISA suit. The original suit was filed in March 2016 by Clive Cooper, a former employee (and participant) of DST Systems,... READ MORE

The parties involved in a suit challenging the ability to defer more to a 401(k) have come to terms, with a settlement of roughly $1.5 million. The suit (Baird v. Hyatt Corp., C.D. Cal., No. 2:22-cv-01620, complaint 3/10/22), filed by one Lance Baird, accused his employer, Hyatt Corporation, of... READ MORE

A federal magistrate judge has recommended curtailment of a key rollover provision of the Labor Department’s investment advice regulation. The recommendation of U.S. Magistrate Judge Rebecca Rutherford comes in a 75-page “findings, conclusions, and recommendations” in response to a suit filed last... READ MORE

The allegations in a new excessive fee suit are familiar—but the plaintiff has clearly been attentive to pleading failures that have led to other, similar cases being dismissed. Commenting that “the proliferation of 401(k)plans has exposed workers to big drops in the stock market and high fees... READ MORE