Has ERISA Litigation Gone Off the Rails?
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In This Issue
Court and Other Legal Issues Has ERISA Litigation Gone Off the Rails? Abstract: For a decade, plan sponsors and service providers have been in the crosshairs of plaintiffs' lawyers. But the few cases have been litigated to conclusion in the courts with largely favorable results for plan sponsors and service providers. David Levine suggests something has changed and plan sponsors and service providers now face a dizzying world of contradictions. Source: Napa-net.org High Court Helps Employers Avoid Frivolous 401k Stock-Drop Suits Abstract: Based on Dudenhoeffer and Amgen, it is clear that the Supreme Court believes that requiring specific, plausible allegations in the plaintiff's complaint will help avoid frivolous 401k stock-drop suits from surviving beyond a motion to dismiss. However, it is likely that future plaintiffs will use the road map provided in those cases to craft complaints that are likelier to survive a motion to dismiss in hopes of reaching a settlement or receiving a favorable judgment. Source: Dentons.com Chevron Hit With Lawsuit Over 401k Plan Fees Abstract: Chevron Corp. is the latest major company to be targeted by a class action challenging the fees associated with its 401k plan investments, including fees paid for Vanguard investment products and services. Source: Bna.com
General Items Abstract: An interview nationally recognized retirement researcher Alicia Munnell about her research on how the shift to defined contribution plans affected saving and its impact on her perception regarding the success of the 401k plan. Source: Fiduciarynews.com Abstract: Roth IRAs generally provide more flexibility, both in terms of how the money is invested and withdrawn. However, Roth 401k accounts offer greater convenience and allow you to contribute more. They're both excellent ways to shield your future income from taxes so if you're eligible, you may want to contribute to both! Source: Financialfinesse.com
Insight: Studies, Research and White Papers Do DC Plans Need to Be Redesigned? Abstract: The revision of DC plans will come down to how proactive plan sponsors are in creating a sophisticated retirement plan that can be used by participants to adequately save for retirement. This 16-page report is a detailed outline of the statistics found in part one of a three-part research series on the outlook for DC plans. Source: Seic.com Plan Design Can Boost Employee Contributions to Canadian Group Retirement Plans Abstract: Better strategic design of group retirement plans and raising contribution rates can help employers improve employees' retirement savings, according to the 2015 Capital Accumulation Plan (CAP) Benchmark Report. Source: 401khelpcenter.com The Efficacy of Publically-Available Retirement Planning Tools Abstract: Publically-available retirement planning tools are publicized to aid households in their retirement planning efforts, but households are likely overestimating tool effectiveness. The authors conclude that the advice provided from a majority of these tools is extremely misleading to households, and propose a more systematic approach to tool development by improved choice of input variables. Source: Ssrn.com A Continuing Shift in Retirement Offerings in the Fortune 500 Abstract: This analysis takes a historical look at the primary retirement plans offered to salaried workers by Fortune 500 companies as well as the ways they have transitioned workers from a traditional DB plan environment into today's account-balance retirement world. Source: Towerswatson.com
Items of Special Interest to Service Providers Top Women Advisors Are Succeeding in a Male-Dominated Profession Abstract: Eight women in the industry talked about keys to their success including, building your own network, developing both female and male mentors, counter resistance by demonstrating expertise, and use what makes you different as a strength. Source: Napa-net.org Fiduciary Rule: No Time to Waste in Prepping for Changes Abstract: Even as a controversial fiduciary proposal is in the final stages of the regulatory process, many advisors aren't bothering to reassess their compliance framework or lay the groundwork for the changes they will have to make in their practices when the DOL's rule becomes the law of the land. Source: Onwallstreet.com Positioning Asset Managers to Capitalize on the Opportunities Created by the DOL Fiduciary Rule Abstract: DST Kasina released this white paper detailing the implications of the Department of Labor's Fiduciary Rule for asset managers. Papers aim is to help business executives understand how key rule changes might provide new opportunities to address the needs of fiduciaries providing fee-based advice. Source: Kasina.com Retirement Plan Advisers Must Prepare for Increased SEC Scrutiny Abstract: It's not just the DOL that's out to strengthen protections for retirement savers. The SEC's Office of Compliance Inspections and Examinations is taking a deep dive into the practices of retirement advisers, including digging into rollover advice and other aspects of conflicts relating to retirement accounts. Source: Investmentnews.com (registration may be required)
Compliance and Regulatory ADP/ACP Safe Harbor Compensation Compliance Confusion Abstract: ADP and ACP safe harbor plans require that a nondiscriminatory definition of compensation be used to determine safe harbor matching contributions. However, the plethora of permitted compensation definitions, and the rules surrounding them, can create compliance issues, particularly if the plan document, payroll, and recordkeeping are not properly coordinated. Source: Aon.com Report: DOL Launching Focus on Benefit Payment Practices Abstract: The Labor Department is rolling out an initiative focused on the investigation of benefit payment practices, focusing on three key areas. Source: Napa-net.org Mid-year Amendments to Safe Harbor 401k Plans and Notices Abstract: New guidance helps plan sponsors comply with the safe harbor plan and notice rules when making mid-year plan changes (Notice 2016-16). The new guidance provides that a mid-year change to a safe harbor plan or to a plan's safe harbor notice doesn't violate the safe harbor rules merely because it's a mid-year change. Source: Irs.gov
Marketplace News Guardian Expands Managed Account Options Cafaro Greenleaf and InHub Partner
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