Behaviors You Should Avoid With 401k Plan Providers
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General Items Behaviors You Should Avoid With 401k Plan Providers Like Rodney Dangerfield, retirement plan providers don't think they get respect. They probably think that way with some of the 401k plan sponsors who use and abuse them. This article is all about the behaviors you should avoid as a 401k plan sponsor in dealing with plan providers, whether they work for you or not. Source: Jdsupra.com Top Issues (and Their Solutions) Plan Sponsors Have With Recordkeepers Nobody's perfect. It's unfair to expect recordkeepers to be. Everyone makes mistakes. The problem is what happens when a mistake occurs. When exit barriers are high, vendors tend to get cocky. And cocky vendors tend to be sloppy when it comes to assistance. Source: Fiduciarynews.com Fiduciary and Plan Governance Cryptocurrency and Retirement Plans As advisors, TPAs, recordkeepers, and other service providers are dipping their toes into including cryptocurrency solutions for their clients, the regulators and legislators are wading in as well. It has been an active first half of 2022 in the world of crypto offerings with a general interest in regulating cryptocurrencies and digital assets coming from President Biden and a specific interest in cryptocurrencies in retirement plans from Congress and the DOL. Source: Napa-net.org Practical Tips for Plan Sponsors and ESG Investments Regulatory and legislative developments continue to accelerate around investments incorporating ESG factors into retirement plans. Plan sponsors and fiduciaries should take note of the fast-changing landscape when selecting and monitoring investment options. Groom Law Group's Jacob Eigner outlines what asset managers need to know about incorporating ESG factors in their investment processes. This includes compliance steps and how firms can build processes to avoid lawsuits from stockholders and the government. Source: Bloomberglaw.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers DOL Extends Comment Period, Sets Hearing on QPAM Exemption Amendment The DOL announced that it will hold an online public hearing on the proposed amendment to its Class Prohibited Transaction Exemption 84-14, commonly known as the qualified professional asset manager exemption. The DOL is also extending the public comment period for the proposed amendment for an additional 15 days, through October 11. This period will be supplemented by a subsequent comment period beginning after the hearing in mid-November. Source: Planadviser.com Court and Legal Two Losses for Pension Plan Participants Challenging Investment Fees In two recent cases, 401k plan fiduciaries defeated claims by participants that they breached their duties under ERISA with respect to investment fees. Source: Yourerisawatch.com Fiduciary Lessons From Recent Litigation The Supreme Court's Hughes v. Northwestern University holding has already revealed its expected impacts: (1) retirement plan fee lawsuits are more likely to survive a motion to dismiss; and, as a result (2) retirement litigation continues to accelerate. A recent collection of litigation activity provides another opportunity for plan fiduciaries to identify helpful protective steps and best practices. Source: Qualifiedplanadvisors.com Principal Prevails (Yet) Again in Fiduciary Suit A case that hinged on the determination of fiduciary status based on control of plan assets has been decided -- again -- in favor of the defendants. Source: Napa-net.org Making Sense of ERISA Pleading Law After the Seventh Circuit's Oshkosh Decision The quest for a predictable and fair pleading standard to stop ERISA class action litigation abuse continues. The Supreme Court in Hughes v. Northwestern gave us a limited opinion that did not solve the problem, and even that opinion initially caused more confusion in the district courts. So the battle continues in the appellate courts. Source: Euclidspecialty.com Seventh Circuit Provides Hope for Fiduciaries Defending Plan Fee Litigation The Seventh Circuit recently provided a ray of sunshine in what has largely been a gloomy stretch for plan sponsors and fiduciaries defending ERISA breach of fiduciary duty claims based on allegedly excessive investment and administrative fees and investment underperformance. In this particular case, Oshkosh emerged victorious with the Seventh Circuit affirming the dismissal of claims that it mismanaged its 401k plan by paying excessive recordkeeping fees, failed to ensure investment options were prudent, and unreasonably maintained high-cost investment advisors. Source: Erisapracticecenter.com Seventh Circuit Ruling Sheds Light Into the post-Hughes 401k Litigation Era Since the Supreme Court's January ruling in Hughes v. Northwestern University, circuit courts throughout the country have issued varying rulings regarding 401k fee litigation cases. These include the Ninth Circuit in Trader Joe's Co. and Salesforce.com, Inc., and the Sixth Circuit in CommonSpirit Health, Inc. and TriHealth, Inc. Most recently, the Seventh Circuit has weighed in, affirming the dismissal of a 401k fee litigation in Albert v. Oshkosh Corporation. Source: Erisalitigationadvisor.com Third Circuit Backs J&J in Stock-Drop Appeal The Third U.S. Circuit Court of Appeals has issued a new ruling in an ERISA stock-drop lawsuit targeting Johnson & Johnson, affirming the dismissal of the lawsuit as ordered by a district court in May 2020. The new ruling emphasizes that a stock-drop plaintiff must do more than allege a general economic theory of why earlier disclosure of a financial issue would have been preferable. Source: Planadviser.com Judge Rejects Chamber's Commentary in ERISA Suit The U.S. District Court for the Eastern District of Michigan has issued a new ruling in an ERISA lawsuit targeting the automotive components and supply business GKN North American Services Inc. The court rejects the defense's motion to dismiss the case but denies the U.S. Chamber of Commerce's bid to submit an amicus brief in the proceedings. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Senate Finance Leaders Formally Introduce EARN Act We now have legislative language for the Enhancing American Retirement Now (EARN) Act and a quick review finds a change from the concept draft regarding catch-up contributions. With legislative language now in hand, it appears the Finance Committee leaders have placed an income floor to the revenue-raising provision concerning catch-up contributions being treated as Roth contributions. Source: Asppa.org »» Click here for more on Legislative and Washington Actions State-Based Private-Sector Retirement Programs Colorado Secure Savings Program Pilot About to Launch The pilot of the Colorado SecureSavings, the Centennial State's state-sponsored retirement savings program for those whose employers do not offer a retirement plan, will launch in October. The pilot will not be broadly open; the Colorado Secure Savings Board is set to work with a select group of Colorado businesses to take part in an exclusive pilot of the program. Source: Asppa.org Compliance and Regulatory DOL (Somewhat) Unshackles Auditors From Stringent Independence Requirements On September 6, 2022, the DOL published an Interpretive Bulletin entitled "Independence of Employee Benefit Plan Accountants" superseding previous guidance governing when the Department considers a qualified public accountant to be "independent." The DOL's preamble statements in Interpretive Bulletin explain that the new guidance "remove[s] certain outdated and unnecessarily restrictive provisions." Source: Groom.com »» Click here for more Compliance and Regulatory Material Marketplace News DOL to Host Webinar on Women's Retirement Security Morgan Stanley Introduces Aggregation of Held-Away Retirement Accounts HUB International Enhances Retirement Services With Acquisition of the Assets of Direct Advisors
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