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Fiduciary Governance
A new excessive fee suit challenges the imprudent selection of share classes, the poor selection of a stable value offering AND exorbitant recordkeeping fees.
Here we have one participant-plaintiff Robert Humphries suing based on the actions (or lack thereof) of the fiduciaries of the $700...
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Just ahead of a scheduled trial date, the parties in a fiduciary breach suit involving a $30 billion master trust have come to terms.
The suit—filed in February 2016 by Melina N. Jacobs—alleged that the fiduciary defendants of the Verizon Master Savings Trust violated their fiduciary duty of...
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A “painstakingly negotiated global Settlement” of some $124 million involving multiple suits (and the involvement of the Labor Department) has been reached in a long-standing ERISA suit.
The original suit was filed in March 2016 by Clive Cooper, a former employee (and participant) of DST Systems,...
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The Department of Labor’s Employee Benefits Security Administration (EBSA) has issued a consultation paper on its review of Interpretive Bulletin (IB) 95-1, which concerns fiduciary standards applicable when selecting an annuity provider for a pension plan.
SECURE 2.0 requires the DOL to review IB...
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The parties involved in a suit challenging the ability to defer more to a 401(k) have come to terms, with a settlement of roughly $1.5 million.
The suit (Baird v. Hyatt Corp., C.D. Cal., No. 2:22-cv-01620, complaint 3/10/22), filed by one Lance Baird, accused his employer, Hyatt Corporation, of...
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Until recently, the federal law governing most private retirement was seldom a subject of national headlines—let alone the subject of an Instagram reel by the Speaker of the House.
But Speaker Kevin McCarthy and others have proclaimed that it now allows investment managers for many workplace...
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A federal magistrate judge has recommended curtailment of a key rollover provision of the Labor Department’s investment advice regulation.
The recommendation of U.S. Magistrate Judge Rebecca Rutherford comes in a 75-page “findings, conclusions, and recommendations” in response to a suit filed last...
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Cybersecurity—and its importance to retirement plans and savings—being top of mind, Assistant Secretary of Labor Lisa M. Gomez has some suggestions on reducing the risk of fraud or loss to your retirement account.
Register, set up, and regularly monitor an online account.
Regularly checking a...
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The allegations in a new excessive fee suit are familiar—but the plaintiff has clearly been attentive to pleading failures that have led to other, similar cases being dismissed.
Commenting that “the proliferation of 401(k)plans has exposed workers to big drops in the stock market and high fees...
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Another target-date fund family has been…targeted…in a fiduciary breach suit that claims plan fiduciaries failed to prudently review—and remove—underperforming target-date funds.
The target-date funds in question this time are the JPMorgan SmartRetirement series, while the plans in question are...
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After a lot of comings and goings, filings and amended filings, an excessive fee suit brought against a $7.9 billion multiple employer plan has faded into the sunset…
The suit was filed in May 2020 in the U.S. District Court for the District of New Jersey by McCaffree Financial Corp.,[1]...
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A participant in yet another mega 401(k) plan claims participants paid nearly twice what they might have for “fungible” recordkeeping services.
This time it’s participant-plaintiff Matthew A. Miller[1] positioned as a representative of a Class of Participants and Beneficiaries of the $22 billion...
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After a lot of comings and goings, filings and amended filings, an excessive fee suit brought against a $7.9 billion multiple employer plan has faded into the sunset…
The suit was filed in May 2020 in the U.S. District Court for the District of New Jersey by McCaffree Financial Corp.,[1]...
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After months of speculation, the Department of Labor’s (DOL) newly released Spring 2023 regulatory agenda confirms that a fiduciary rule rewrite could be released later this summer; it also provides other key insight for the department’s regulatory plans for the coming months.
In fact, the fall...
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A federal judge has dismissed a multi-billion plan fiduciary's motion to dismiss an excessive fee/fiduciary breach suit.
The defendants in this case—filed in the U.S. District Court for the Eastern District of Michigan in early 2021—are the fiduciaries of the Magna Group of Companies Retirement...
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A federal judge has approved the recommendation to certify a class in a proprietary fund suit—determining that even a “well-educated, well-informed, and careful investor”—might lack actual knowledge of fiduciary breaches.
The Suit
The participant-plaintiff in question here is one Brian Waldner,...
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The Department of Labor has pushed back on a lawsuit filed by a coalition of 25 state attorneys general that challenged its so-called ESG regulation.
The coalition,[1] led by Texas Attorney General Paxton, said in a January 2023 press release that the 2022 Rule “undermines key protections for...
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A participant lawsuit claims that American Airlines has put retirement savings at risk by investing with managers and funds that “pursue leftist political agendas through environmental, social and governance (ESG) strategies, proxy voting, and shareholder activism.”
Participant-plaintiff (and...
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Evan Greebel, pharma bro Martin Shkreli’s lawyer and co-conspirator, lost his bid to protect his 401(k) from garnishment to pay restitution to his victims.
The Supreme Court declined to hear the case, effectively ending Greebel’s quest to keep his retirement plan free from a $10.4 million judgment...
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The IRS has issued guidance on the expansion of the Employee Plans Compliance Resolution System (EPCRS) under Section 305 of SECURE 2.0.
The guidance is contained in Notice 2023-43, which provides interim guidance in advance of an update to Revenue Procedure (Rev. Proc.) 2021-30.
The issues the...
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