Unqualified Expert Tanks 401k Fee Class Action
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Court and Legal Unqualified Expert Tanks 401k Fee Class Action The court rejected the expert's testimony in its entirety, denied the plaintiffs' motion, and granted judgment in favor of the TriNet defendants. In a decision devoted almost entirely to the TriNet defendants' Daubert motion, the court concluded that the plaintiffs' expert was not qualified to testify competently regarding the 2015 RFP because he admitted he had never conducted an RFP, had not responded to an RFP in nearly 40 years, and acknowledged that he would have to rely on the expertise of a consultant to determine how the defendants should have conducted the RFP process. Source: Millerchevalier.com Settlement Struck in Schneider Electric Excessive Fee Case An excessive fee suit where plan fiduciaries had prevailed on most issues has now settled the remaining claims. The suit had targeted Schneider Electric, the two committees that oversee the $4.5 billion plan, and Aon Hewitt Investment Consulting, the plan's investment manager with replacing well-performing funds with the Aon Trusts for their own financial gain rather than to benefit plan participants. Source: Napa-net.org Aon, Astellas Pay to Settle CIT Conflict of Interest Litigation Investment manager Aon Investment Consultants and plan sponsor Astellas Pharma US Inc. have settled a complaint brought by current and former participants in the pharmaceutical company's 401k plan, according to a Friday court filing. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Fiduciary and Plan Governance ERISA contains a provision that a contract or arrangement for employee benefit plan services and the fees for those services are reasonable, the so-called "Fee Rule." It is not well understood by retirement plan committees and is abused by some service providers to the detriment of their plan sponsor clients. Article contains five proven compliance action steps. Source: Rolandcriss.com Plan Sponsors Should 'Definitely' Have Cyber Liability Insurance: Lisa Gomez At PSCA National just last week, ARA CEO Brian Graff and EBSA Assistant Secretary Lisa M. Gomez discussed a wide range of topics, including the many misunderstandings about cyber liability insurance (which could be a huge fiduciary failure) and the ESG rule. Source: Napa-net.org Resistance to retirement plan innovations (like automatic enrollment) has long been excused as being too paternalistic, but there might be a better standard -- a maternal standard of care. Source: Napa-net.org The Bad Bet of Self-Directed Brokerage 401k Options 401k plans with self-directed brokerage accounts that allow participants to choose almost any type of investment is another form of gambling and a plan fiducaries may unknowingly expose themselves to liability. This article is about the hidden dangers of 401k plans in offering self-directed brokerage accounts to plan participants. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers 2023 Retirement Plan Landscape Report Millions of Americans rely on the retirement system to save and invest for their futures. Expanding access to employer-sponsored retirement plans is essential to ensuring Americans are saving enough for the future, but it's also necessary for the current system to address its weaknesses. In the second iteration of Morningstar's annual report, they take a comprehensive look at the overall health of the U.S. retirement system, cast a light on its weaknesses, and outline implications for the industry and policymakers alike. Source: Morningstar.com How Technology Has Transformed the RFP Process For many plan sponsors, conducting a request for proposals to find a new recordkeeper or adviser can be a daunting task from both a time-consuming and administrative burden standpoint. Now when searching for a new recordkeeper or adviser, plan sponsors can take advantage of new technology tools to help streamline the RFP process and avoid the administrative headache. Source: Plansponsor.com 401k Participant Pulse: Tracking the Confidence of Plan Participants Plan participants may access or make changes to their retirement accounts in response to several factors, including the state of the market and the economy. These key metrics, in part, signal participant confidence and sentiment. Notably, in early 2023, fewer participants took loans, but for higher amounts, while hardships increased in number and amount. At the same time, participants started the year with lower balances but higher contributions than last year. On a positive note, more participants are increasing their plan contribution rates than decreasing their rates, across all generations. Source: Bofa.com 2 in 3 Small Businesses Still Don't Offer Retirement Plans: Fidelity The private retirement plan industry knows it has a coverage gap that needs to be addressed, and further evidence that the gap exists is out today with findings from the first-ever "Small Business Retirement Index" from Fidelity Investments. Source: 401kspecialistmag.com Retirement Savings Gap Could Create $1.3 Trillion Burden by 2040 Some disturbing projections came out of a study released this week. New research from Pew finds Americans' insufficient retirement savings could add a huge strain to state and federal budgets if the issue is not addressed. Source: 401kspecialistmag.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers DOL Fiduciary Rulemaking in Jeopardy Amidst Recent Court Rulings Two recent federal court decisions -- one in Florida and one in New York -- have cast significant doubt on the ability of the DOL to issue and enforce formal regulations defining who qualifies as a fiduciary under federal benefits law. It may also make it challenging for the DOL to issue a legally valid final rule on the subject. Source: Hallbenefitslaw.com DOL Offers Some Good News for Smaller Businesses With 401k Plans It's not often that business owners get good news from the government, but small and even some medium-sized businesses with 401k plans got a helping hand from the DOL earlier this year when they eased the rules for identifying which 401k plans are required to have audited financial statements. Source: Blankromeworkplace.com 403b Plans Enhancing 403b Plans to Be More Like 401k Plans It seems like 403b plans are going through the process of becoming more like a 401k plan. Recent regulations in SECURE Act 2.0 are making this more so. This article examines this process. Source: Orba.com »» Click here for More 403b Material Compliance and Regulatory SECURE 2.0: Required Minimum Distributions Individuals who turn age 72 after December 31, 2022, and who reach age 73 before January 1, 2033, have a compulsory RMD age of 73. So, what does that mean? Individuals who turn 73 during 2023 must take an RMD for 2023 by April 1, 2024, but individuals who turn 72 during 2023 do not have to take an RMD until 2024, the year they turn 73, which means they can wait until April 1, 2025. Source: Belfint.com »» Click here for more Compliance and Regulatory Material Marketplace News New Vestwell Partnerships to Support Advisors in Small Biz 401k Market Company Launches to Evaluate Annuity Options in 401k Plans October Three Consulting Acquires Retirement Learning Center PSCA Announces 2023 Lifetime Achievement, Signature Award Winners
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