ERISA Litigation Continues a Plaintiff-Friendly Trend
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Court and Other Legal Issues ERISA Litigation Continues a Plaintiff-Friendly Trend Abstract: An unmistakable trend in the world of employee benefit plan litigation is underway, and that trend is decidedly in favor of plaintiffs. The trend has manifested itself in several ways. Employee benefit plan sponsors, their owners and risk managers, should take note of these trends, which show no signs of reversing. Source: Truckerhuss.com American Century Employees Sue for Excessive 401k Fees Abstract: Employees of American Century, parent of asset management firm American Century Investments, have sued over the firm's 401k plan. This is the latest in a string of lawsuits targeting financial services companies for their own retirement plans. Source: Investmentnews.com (registration may be required) ERISA Class Action Targets Fujitsu's 401k Plan Fees Abstract: A new ERISA class action accuses Fujitsu Technology & Business of America Inc. of breaching its fiduciary duties by designing and administering one of the most expensive large 401k plans in the country. Source: Bna.com Delta Employees Sue Fidelity for 'Illegal Kickbacks' From Financial Engines Abstract: In an ERISA lawsuit that even has attorneys scratching their heads, employees of Delta Air Lines are suing Fidelity for breaching its fiduciary duty in accounts in which it has farmed out the fiduciary portion of the service bundle. The case may turn on whether Fidelity, by acting as recordkeeper and administrator, qualifies as a fiduciary and therefore breached its duty as it accepted Financial Engines' advice fees. Source: Riabiz.com Disney Retirement Plan Committee Sued Over Sequoia Investments Abstract: A former Orlando-based Walt Disney Co. employee has sued the committee that deals with workers' retirement plans, saying it made unwise investment decisions. Specifically, the federal lawsuit targets the Disney committee over its investment in the Sequoia Fund, which lost $2 billion after one of its biggest stocks tanked. Source: Orlandosentinel.com Edison Executives Beat ERISA Challenge to Stock Losses Abstract: Two Edison International Inc. executives convinced a federal judge to dismiss a lawsuit attacking their decision to offer workers Edison stock in the company's 401k plan. Source: Bna.com
Fiduciary and Plan Governance Material The Three Things DC Plan Sponsors Need to Focus On Abstract: As DC plans have grown in sophistication, many plan sponsors no longer have the resources, scale or expertise to properly manage them. Moreover, managing DC plans demands time and resources, two things often in short supply within the HR department or other parts of an enterprise given the demands of managing a DC plan. Author recommends three key things that plan sponsors need to target to can help. Source: Russellinvestments.com Collective Investment Trusts Rise in Popularity Abstract: Collective investment trusts have been capturing lots of attention and assets lately. CITs offer retirement-plan fiduciaries an attractive, generally lower-cost alternative to mutual funds. Assets invested in these vehicles have grown from about $900 billion in 2008 to over $1.5 trillion at the end of 2014, according to Pensions & Investments data. Source: Investmentnews.com (registration may be required)
Insight: Studies, Research and White Papers Unlocking Value From Effective Retirement Plan Governance Abstract: This 20-page research report explores four areas critical to effective plan governance: risk management, levels of governance, strategy and the measuring of plan effectiveness. It notes three major trends emerge from the survey findings. Source: Willistowerswatson.com Preparing for a DB to DC Plan Transition Abstract: This 10-page paper discusses plan transition considerations from the standpoints of business strategy, human resources, and employee impact. As plan sponsors continue to shift away from DB plans in favor of more DC-based plan designs, like 401k and profit sharing plans, the accompanying reallocation of risk from the plan sponsor to its employees creates new issues to be resolved. Source: Wellsfargomedia.com
Plan Automation Managing Plan Costs in Automatic Programs Abstract: Plan sponsors today are faced with unprecedented challenges in offering effective retirement plans. Achieving plan objectives in an environment of constrained budgets, talent competition, and increasingly complex fiduciary requirements can sometimes seem like a difficult balancing act. However, with the right combination of plan design and automated program features, retirement plan effectiveness can often be improved within reasonable budget levels. Source: Troweprice.com Automatic Plan Features in DC Plans: What's in It for Plan Sponsors? Abstract: This 14-page white paper highlights several potential benefits of automatic plan features to the employer and profiles plan sponsors who have experienced these benefits. Additionally, it provides a roadmap for implementation that suggests strategies a plan sponsor may employ to implement automatic plan features over a multi-year period. Source: Dciia.org Unintended Consequences Can Result From Job-Jumping Millennials Abstract: Auto-services are widely touted as positive developments that drive better participant outcomes. Until now, however, they have been deployed on a very company-loyal demographic. How effective are those same services for a generation that changes jobs every few years? Source: Troweprice.com
Compliance and Regulatory IRS Provides Determination Letter Guidance in Revenue Procedure 2016-37 Abstract: The IRS released Revenue Procedure 2016-37, which provides new determination letter processes and remedial amendment periods for individually designed qualified retirement plans. The Revenue Procedure also makes certain modifications to the six-year remedial amendment cycle system for pre-approved qualified retirement plans. Source: Practicallaw.com DOL Increases Civil Money Penalties Abstract: The DOL issued an interim final rule to adjust the amounts of civil penalties assessed in its regulations, as required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Contains charts of fees. Source: Practicallaw.com A Whole New World for Qualified Plans: Revenue Procedure 2016-37 Abstract: This wide-ranging article addresses the modifications to the determination letter program and ongoing compliance for individually designed qualified plans. Source: Drinkerbiddle.com
Marketplace News Wilkes Appointed Partner at Wagner Law Group LIMRA LOMA Launches Fiduciary Rule Course
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