Advisors Face $100 Million Retirement Scheme Suit
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In This Issue
Court and Legal Advisors Face $100 Million Retirement Scheme Suit Abstract: A group of insurance agents, brokers, financial planners and investment advisory firms spanning the country were working together to allegedly scam thousands of investors out of retirement funds totaling $100 million. Source: 401kspecialistmag.com Analysis of Settlement Terms in Deutsche Bank ERISA Litigation Abstract: The underlying allegations were that Deutsche Bank and other defendants violated their fiduciary duties by offering in the company's own 401k plan proprietary, high-cost investments that profited the bank. The case history of the litigation offers a prime example of the incredible complexity of ERISA challenges. Source: Plansponsor.com Can Arbitration Shield You From 401k Class Actions? Abstract: The Ninth Circuit Court of Appeals in a case involving the University of Southern California has ruled that class action waivers do not apply to fiduciary breach claims under Section 409 of ERISA. Plan sponsors cannot count on courts automatically upholding employment agreements imposing mandatory arbitration of ERISA claims. What else can plan sponsors do? Source: Cohenbuckmann.com Federal Judge Sends Scottrade Case Back Abstract: Scottrade's attempt to make a federal case of an administrative proceeding filed by Massachusetts alleging violations of internal policies adopted in anticipation of the Labor Department's fiduciary rule has been rebuffed by a federal judge. Source: Napa-net.org Court Finds All Claims Plausible in T. Rowe Price Self-Dealing Suit Abstract: The original complaint accuses T. Rowe Price 401k plan trustees of breaching their fiduciary duties under ERISA by either failing to remedy their predecessors' breaches, or, in a few cases of offering expensive retail class versions of proprietary mutual funds, waiting too long to act to shift into lower cost versions of the funds. Source: Plansponsor.com Second Lawsuit Over Duke University 403b Plan Filed Abstract: The new lawsuit alleges the university engaged in prohibited transactions when it used revenue sharing from plan investments to pay for HR staff salaries and fringe benefits. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Fiduciary and Plan Governance Collective Investment Trusts: An Investment Perspective Abstract: Collective Investment Trusts offer some potential benefits to retirement plan participants over traditional mutual funds. On the surface, mutual funds and CITs appear to be very similar in that they are both pooled buckets of investments. However, CITs can provide some cost and operational efficiencies not found in mutual funds. Source: Cammackretirement.com Make Sure You Take Sufficient Steps to Find Missing Participants Abstract: Written requests have been submitted to the DOL asking for additional clarification that spells out when a plan administrator has satisfied its fiduciary duty as it relates to finding missing participants. The agency is silent so far. While the retirement plan community awaits requested guidance on missing-participant searches, this column offers a few best-practice tips. Source: Blr.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Striking Similarities and Disconcerting Disconnects: Employers, Workers and Retirement Security Abstract: A new study from nonprofit Transamerica Center for Retirement Studies revealed only 16 percent of employers are "very confident" that their employees will be able to achieve a financially secure retirement. The study also illustrates ways that employers are out of sync with workers regarding perceptions and business practices related to older workers and it examines the current state of 401ks and other benefit offerings by company size. Source: Transamericacenter.org Staying Power Among the Automatically Enrolled, Research Says Abstract: Automatic enrollment has long been touted as an effective means to increase participation in retirement plans; a recent study has found strong retention among employees added to plan rolls automatically. Source: Asppa.org »» Click here for More Studies, Research, and White Papers Compliance and Regulatory IRS Private Letter Ruling Will Help Clear the Way for 401k Plan Student Loan Benefits Abstract: The IRS released a private letter ruling which will help clear the way for employers to provide a new type of student loan repayment benefit as part of their 401k plans. This ruling is important because many employers have been looking for ways to help their employees manage student loan repayment obligations, but to date the options available for doing so have been rather limited. Source: Mwe.com IRS Private Ruling on Student Loan Benefit Under 401k Plan Likely to Fuel Interest Abstract: Many employers have been looking for ways to help their employees cope with their student loan debt. Companies have chosen to provide aid by making tax-deferred contributions to their 401k or other DC plans for affected participants. Interest in this approach increased greatly after June 26 when Abbott Labs announced its "Freedom 2 Save" program on which it had received an IRS private letter ruling. Source: Groom.com DOL's Ongoing Project Looks Into Retirement Plan Investments and Fees Abstract: The DOL's Employee Benefit Security Administration's Plan Investment Conflicts (PIC) project investigates issues related to fiduciary service provider compensation and conflicts of interest in relation to plan asset vehicles. Source: Planadviser.com 401k Nondiscrimination Testing: A Simple Guide for Improving Your Results Abstract: Whether you're new to 401k administration, starting a new 401k for your business, or trying to fix failed testing for your existing 401k, understanding and dealing with nondiscrimination testing can be a major hassle. This guide to be an end-to-end resource on the topic. Source: Forusall.com »» Click here for more Compliance and Regulatory Material Marketplace News Ascensus Enters Into Agreement to Acquire PenSys DWC Opens Satellite Branch in New Orleans »» Click here for More Marketplace News
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