Expect the Breach of Fiduciary Duty Cases to Keep on Coming
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 In This Issue
Fiduciary and Plan Governance Expect the Breach of Fiduciary Duty Cases to Keep on Coming Plan fiduciaries that have adopted fiduciary best practices should be able to rely on those processes to satisfy the duty of prudence standard articulated under Tibble. These best practices can minimize the risk of potential litigation. Plan fiduciaries that have not adopted prudent practices and processes should do so now to best position themselves against a potential breach of fiduciary claim. Source: Icemiller.com DC Plans Cannot Include Non-Prudent Investment Options In a unanimous decision, the U.S. Supreme Court ruled that a fiduciary's duty to monitor investments in participant-directed 403b plans means the plan cannot include non-prudent investments. Source: Segalco.com After Supreme Court Ruling, Are TDFs a Ticking Time Bomb of Fiduciary Liability? The Supreme Court did not rule on the viability of Hughes' claim nor on whether the case should be heard. It just stated that the Seventh Circuit cannot dismiss the case in the manner which it did. The Seventh Circuit must now reconsider whether to dismiss the case. Despite the nature of the Hughes case, the wording in the Supreme Court decision may have an impact on how other 401k cases are treated. Source: Fiduciarynews.com (registration may be required) »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Presenting the Future: Six Retirement Policy Challenges The author writes, "As the new year begins, here are the big retirement policy challenges we're facing, in my view. Note that these are our long-run problems, as opposed to, say, clarifying the rules on ESG investments or for fiduciaries who provide advice." Source: Asppa.org Look Around the Corners: A New Perspective for Tomorrow's Retiree The nature of retirement is evolving. Today's retirement savers need to do more than just look down the road. They need to look around the corners to prepare for uncertainties and avoid making costly mistakes. As pension plan coverage continues to decline, individuals have more responsibility for their retirement outcomes. They also have fewer options and less flexibility to adjust to changing circumstances. This 15-page retirement study focuses on a few key factors that influence retirement outcomes, giving employers and advisors insights to help workers and retirees with retirement decisions. Source: Allspringglobal.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Four Trends to Boost Your 401k Practice in 2022 As we begin 2022, now is an opportune time to set yourself up for success in the coming year. Here are some hot industry trends you can expect to be front and center, as well as thoughts on how to leverage them to scale your practice while managing your client relationships and business more efficiently. Source: Fiduciarydecisions.com To perhaps state the obvious, all third-party administrators are not alike. Those differences can make or break a good working relationship, with you, and your plan sponsor clients. Here are some checkpoints. Source: Napa-net.org 403b Plans IRS Issues Required Amendments List for Individually Designed Qualified and Section 403b Plans The Required Amendments List is an annual list of changes in retirement plan qualification requirements. It also establishes amendment deadlines for individually designed plans. On November 30, 2021, the IRS issued Notice 2021-64, which provides the 2021 Required Amendments List for qualified retirement plans and 403b retirement plans. Source: Hallbenefitslaw.com »» Click here for More 403b Material Court and Legal Judge Cites Recent Supreme Court Ruling in Denying Dismissal of Excessive Fee Suit Just two days after the U.S. Supreme Court handed down its decision in the Hughes v. Northwestern University lawsuit, a federal court has used the high court's reasoning to deny a motion to dismiss a lawsuit against 403b plan fiduciaries. Source: Planadviser.com Bessemer Trust Company Faces ERISA Self-Dealing Lawsuit A former retirement plan participant of the Bessemer Trust Company 401k and Profit-Sharing Plan has filed a lawsuit against the company and its plan committee alleging breaches of fiduciary duty under ERISA. The plaintiffs say the firm's retirement plan was stuffed full of high-cost, proprietary funds. Source: Planadviser.com The Supreme Court Holds Process Determines Prudence in 401k and 403b Fee Litigation This week, the Supreme Court reminded fiduciaries that, while deference to their decisions may be warranted, ERISA's duty of prudence will be satisfied by a fiduciary exercising its judgment after a thoughtful process relative to the issue presented. The decision reinforces that there are no hard and fast rules on the appropriateness of fees in 401k and 403b plans; the determination of whether an ERISA fiduciary has acted prudently in offering investment choices and approving the fees associated with those choices is fact- and context-specific. Source: Debevoise.com What Does the Supreme Court's Newest Fee Decision Mean for Retirement Plans? On January 24, the U.S. Supreme Court issued a short unanimous opinion in Hughes v. Northwestern University. The importance of the opinion will likely be modest. At a basic level, all the Supreme Court did was reinstate a case that was thrown out of the lower courts too early. But there are two key takeaways from the Hughes v. Northwestern opinion. Source: Bradley.com The Northwestern Decision: A Win for Plaintiffs but a Possible Turn in the Tide? While on its face, this decision might appear to be a win for the plaintiffs, the Supreme Court did not go nearly as far as plaintiffs had hoped. And the decision could ultimately signal a harder hill to climb for plaintiffs' claims in the world of 401k fee lawsuits. In the meantime, plan fiduciaries should take note of the court's opinion and consider ways to document a record on fees and expenses that is in line with the Court's decision. Source: Groom.com »» Click here for more Court and Other Legal Issues Cyber and Plan Security Data Privacy and Security: Key Concerns for Benefit Plans In consideration of Data Privacy Day, it is the perfect time to take stock of retirement and health plan information. Here are some questions benefit plans should be asking concerning plan data. Source: Groom.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory Is Your Plan's Matching Contribution Formula Delivering Results? Offering matching contributions under a 401k plan can serve two purposes: 1) Providing a valuable benefit to your employees, and 2) Encouraging plan participants to play a meaningful role in preparing for their retirements. The trick is to do both in a way that is affordable for both you and your employees. How can your company best perform that balancing act? Source: Orba.com IRS Updates Annual Determination and Opinion Letter Procedures Rev. Proc. 2022-4 contains annual updates to procedures for requesting IRS determination letters, private letter rulings, and other tax advice on employee plan matters. Key changes to last year's revenue procedure are reviewed here. Source: Mercer.com »» Click here for more Compliance and Regulatory Material Marketplace News National Professional Planning Group Announces Launch of New Pooled Employer Plan ASPPA Launches Introduction to Retirement Plans Course
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