ERISA Complaint Alleges $751K Retirement Account Thievery
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Court and Legal ERISA Complaint Alleges $751K Retirement Account Thievery A new ERISA lawsuit has been filed in the U.S. District Court for the Southern District of New York, naming as defendants the Colgate-Palmolive employee relations committee, plan recordkeeper Alight Solutions, and custodian BNY Mellon for their parts in operating the company's defined contribution retirement plan. The entire retirement account balance of a Colgate-Palmolive retirement plan participant who lives in South Africa was distributed to a bank account in Las Vegas. Source: Planadviser.com ERISA Plan Arbitration Clauses Likely Headed to U.S. Supreme Court Various federal appellate courts have considered cases in which employers attempt to prevent ERISA class action lawsuits by including mandatory arbitration requirements in their plan documents. Due to the varying outcomes of these cases, this issue is likely headed to the U.S. Supreme Court for resolution. Source: Hallbenefitslaw.com Appellate Court Backs Freedom Funds Fee Suit Dismissal A federal appellate court has backed the dismissal of an excessive fee suit, rejecting the notion that offering actively managed funds -- even those with disappointing performance -- by itself doesn't support allegations of a fiduciary breach. Source: Ntsa-net.org Nextep Settles 401k ERISA lawsuit for $1.1 million Nextep Inc. will pay $1.1 million to settle an ERISA lawsuit filed by former participants in a company 401k plan, according to an agreement filed July 8 with a U.S. District Court in Norman, Okla. The parties announced an agreement in principle in May 2022 but didn't disclose the terms then. The settlement requires court approval. Source: Pionline.com »» Click here for more Court and Other Legal Issues Fiduciary and Plan Governance Why TDF Risk Near Retirement Is a Bad Bet Retirement researchers have documented the importance of Sequence-of-Returns Risk and the Risk Zone. Losses sustained in the five to 10 years before and after retirement can do irreparable harm. It's a gauntlet we each must run once. But target-date funds do not protect against this risk, ending 85% in risky assets at their target retirement date: 50% in equities plus 35% in risky long-term bonds. Source: 401kspecialistmag.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers 58% of Canadian Pre-Retirees Contributing to Retirement Savings: Survey While more than half (58 percent) of employees within 10 years of retirement are contributing to retirement savings, only about a third (30 percent) have established a thorough financial plan, according to a new survey by Age Wave and Edward Jones Canada. The survey, which polled more than 1,000 Canadians aged 45 or older who were retired or within 10 years of retirement, only a third (33 percent) of retirees said they're in great shape financially. On average, retirees started saving at age 37 but wished they had started saving at age 28. Source: Benefitscanada.com Changing Behavior for a More Secure Retirement One of the keys to financial security in retirement is behavior; in particular, before retirement, and the earlier the better. That was the underlying message of an expert panel in a recent webinar concerning retirement readiness. In a recent EBRI webinar, panelists discussed retirees' views on their situations and how their decisions led to that, as well as what employers can do to empower future retirees to build a sound financial future and retirement. Source: Asppa.org 401k Investors Had an Active Trading Month in June Alight Solutions has published the June update of its 401k Index, noting that it was another active trading month for investors. There were five above-normal trading days in June, Alight says. All but three days in the month had net trading flows going from equities to fixed income. Source: Planadviser.com Fund Fees Dropped Nearly $6.9 Billion in 2021 Continuing their two-decade decline, the average expense ratio paid by fund investors fell again last year, Morningstar's annual U.S. Fund Fee Study reports. The study, which evaluates trends in the cost of U.S. open-end mutual funds and exchange-traded funds, found that the asset-weighted average expense ratio of U.S. funds fell from 0.42% in 2020 to 0.40% in 2021, saving investors an estimated $6.9 billion as a result. Source: Napa-net.org How Planning for Retirement Has Evolved J.P. Morgan Asset Management has released its annual "Guide to Retirement," providing a detailed update on the retirement landscape and new insights into the saving and spending behaviors of retirees. According to the report, the best way to mitigate such wide-ranging challenges is to develop a comprehensive retirement plan and focus on what can be controlled. This includes maximizing savings as early as possible, understanding and managing to spend, and being well-diversified from an investment and tax perspective. Source: Plansponsor.com Roughly Half of Americans Lack Access to Workplace Retirement Plans Roughly half of the workers in the U.S. do not have access to a retirement plan at work, according to a new AARP study released this week. Nearly 57 million people -- 48% of American private sector employees ages 18 to 64 -- work for an employer that does not offer either a defined contribution plan or a pension plan. Source: 401kspecialistmag.com »» Click here for More Studies, Research, and White Papers Compliance and Regulatory 2023 IRS Limits - June Forecast This is an update to the Milliman 2023 IRS limits forecast using the U.S. Bureau of Labor Statistics report published July 13, 2022. Seven of the 12 expected limits are higher than the forecast in our May report. With only three months remaining for the fiscal year 2022, the 2023 IRS limits forecast will most likely set the record for a one-year increase. Source: Milliman.com Plan Documents: The Lifeblood of Compliance Plan documents are the lifeblood of compliance. They drive communication, they drive compliance. People get into a lot of trouble when they don't handle plan documents correctly, and that failure to comply on time is one of the biggest compliance issues for the IRS. Source: Asppa.org Blunders That Can Cost a 401k Plan Sponsor A blunder is a stupid and careless mistake. History is filled with well-known blunders. Blunders you make as a plan sponsor won't make the history books, they will just cause you headaches and possibly cause you financial harm. This article is all about the blunders to avoid now as a 401k plan sponsor. Source: Jdsupra.com Why Missing 401k Participants Are So Misunderstood "Missing participants" is a label for a problem that's ill-defined and poorly understood, and where fundamental misunderstandings exist, inadequate solutions -- paired with the prospect of unwanted regulatory attention or audits -- can persist. Here's how you can better understand the problem and free yourself from the missing participant treadmill. Source: 401kspecialistmag.com Retirement Plan Sponsors Should Prepare for the New IRS Pre-Examination Pilot Program In June 2022, the IRS launched a pre-examination pilot program for retirement plans that could help employers avoid costly penalties. The program aims to reduce the burden of, and time spent on, retirement plan audits, which are typically a time-consuming endeavor for plan sponsors. The program ultimately should be good news for plan sponsors in terms of both financial penalties and, presumably, a more efficient audit process. Source: Spencerfane.com »» Click here for more Compliance and Regulatory Material Marketplace News Hub International Announces Benefits SmartView Platform Price Named President of FuturePlan Empower Achieves $62 Billion in Organic Retirement Plan Sales During First Half of 2022
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