VP of HR Sued Over 401k Operational Error
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In This Issue
Court and Legal VP of HR Sued Over 401k Operational Error Abstract: A proposed class action lawsuit in the Northern District of Illinois, involving a failure to follow the terms of a 401k plan, personally names the Vice President of Human Resources for Conagra Brands, Inc. Karlson v. Conagra Brands as a defendant, and, as it happens, the lead plaintiff is the former senior director of global benefits at the company. Other named defendants included the benefits administrative and appeals committee of the Conagra board, both of which committees included the named VP of Human Resources among its members. Source: Eforerisa.wordpress.com Fidelity Charged With "Secret" Payment Scheme in Violation of ERISA Abstract: A lawsuit contends that kickback payments Fidelity requires from investment funds bear no relationship to the cost or value of services provided and are a replacement for declining amounts of revenue sharing payments received by Fidelity as a result of the increasing use of passive mutual funds, institutional and R6 share classes of mutual funds and collective trusts. Source: Plansponsor.com Franklin Templeton Settles 401k Lawsuit for $14 Million Abstract: Franklin Templeton Investments has agreed to pay roughly $14 million to settle a lawsuit alleging the firm profited at the expense of its employees by loading its 401k plan with in-house investments. Source: Investmentnews.com (registration may be required) The First Circuit's Putnam Decision: Where Does ERISA 401k/403b Litigation Go Now? Abstract: The First Circuit Court of Appeals recently handed down its decision in Brotherston v. Putnam Investments, LLC. The First Circuit vacated the lower court's decision in which the court had dismissed the plaintiff's ERISA excessive fees/breach of fiduciary duty action. The First Circuit has laid down the gauntlet for plan sponsors, investment fiduciaries and ERISA attorneys. Source: Iainsight.wordpress.com Parties in Anthem ERISA Fee Litigation Propose Settlement Abstract: The parties in an excessive fee lawsuit filed against the committee that oversees the Anthem 401k plan have reached a settlement agreement. Fiduciary defendants were accused of allowing unreasonable expenses to be charged to participants for administration of the plan and of retaining high-cost and poor-performing investments. Source: Planadviser.com »» Click here for more Court and Other Legal Issues General Items Retirement Plans Are Undergoing a Technology Transformation, Too Abstract: Technology is adding efficiencies in every part of the business world, and retirement plans are no exception. From an emphasis on cybersecurity, to the ability to use robotics process automation, data analytics and bots to eliminate time spent on collecting, scrubbing and aggregating data, employers need to consider how these new tools can be used in their organization. Source: Sbnonline.com Evaluating Roth and Pretax Retirement Savings Options Abstract: There are two ways to get Roth account exposure: a Roth IRA or through a retirement plan that has a designated Roth account. While Roth IRAs have income eligibility limits, those do not apply to contributions within a 401k plan. Pretax contributions are generally preferable for people who expect their income tax rate to decrease in retirement. Having Roth accounts may make sense for tax diversification, flexibility and as a hedge against higher tax rates. Source: Troweprice.com Fiduciary and Plan Governance As a 401k Sponsor, a Class Action Lawsuit Is the Least of Your Worries Abstract: Plan sponsors often say they have nothing to fear about being sued since their plans are small potatoes. The problem with that view is that a big class action lawsuit is the least of their worries as a plan sponsor. This is why you need to be vigilant and diligent in your duties as a retirement plan sponsor. This article is about the many threats that could hurt you in the pocketbook when it comes to your 401k plan. Source: Jdsupra.com The Pros and Cons of Arbitrating ERISA Fiduciary Claims Abstract: Arbitration is an oft-used form of alternative dispute resolution. Two or more parties fail to resolve a disagreement, they may turn to arbitration. But is it better to litigate or arbitrate? The answer to this question depends on a number of factors. Source: Hallbenefitslaw.com »» Click here for more Fiduciary and Plan Governance Material Legislative and Washington DC Congressional Hearings a Harbinger of Pension Reform? Abstract: We witnessed several important hearings in Congress during the first week of February. The two revealed what could be a healthy, bipartisan push for retirement plan reform, and this could bode well for those trying to close the retirement savings gap. Source: Ascensus.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory Check Your Plan's Definition of Compensation in Light of Tax Reform Abstract: The Tax Cuts and Jobs Act amended Section 217 of the Internal Revenue Code (Code) to suspend the deduction for moving expenses from 2018 through 2025. This change has a subtle yet meaningful impact on many tax-qualified retirement plans. Source: Morganlewis.com More IRS Guidance Needed on Unclaimed 401k Savings: GAO Abstract: There may be more than $100 billion in unclaimed retirement money. The Internal Revenue Service should issue further guidance to clarify the tax treatment of unclaimed 401k plan savings that have been transferred to states, the Government Accountability Office advises. Source: Thinkadvisor.com Updated IRS FAQ on Adopting Pre-Approved Retirement Plan Abstract: Updated FAQ from the IRS on employers adopting pre-approved retirement plans. Covers questions like, "I have an individually designed plan and would like to adopt a pre-approved plan. How do I make the switch?" and "What is the deadline for an employer to adopt a newly approved version of a pre-approved plan?" Source: Irs.gov Who's Actually Performing Your 401k Audit? Abstract: You recently met the requirement that necessitated an audit of your 401k Plan. You reach out to your financial advisor, third-party administrator, or perhaps even Google around for a 401k Plan auditor. After speaking to the partner of a few firms that you discovered, including the review of their amazing marketing material, you finally choose a firm. The date is set for the auditor to come out and start the audit. To your surprise, the partner that was heavily involved during the auditor search is nowhere onsite during the audit and the majority of testing is performed by the newer staff auditors. Welcome to the modern world of public accounting. Source: Poolercpa.com »» Click here for more Compliance and Regulatory Material Marketplace News 401k Averages Book Finds Most 401k Plan Fees Declining New Investors Acquire 25% of Ascensus Francis Investment Counsel Opens New Minneapolis Office »» Click here for More Marketplace News
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