Posts in Retirement Plans
Appellate Court Revives UPenn 403(b) Lawsuit

“The 3rd U.S. Circuit Court of Appeals has revive a lawsuit against fiduciaries of the University of Pennsylvania’s 403(b) plan which had been fully dismissed by a District Court in 2017.

The appellate court agreed with the dismissal of most claims, but when it came to claims about excessive fees and improper investments, the court found the plaintiff plausibly alleged a breach of fiduciary duty under the Employee Retirement Income Savings Act (ERISA). It said the plaintiff’s factual allegations are not merely “unadorned, the-defendant-unlawfully-harmed-me accusations, but are numerous and specific factual allegations that the university did not perform its fiduciary duties with the level of care, skill, prudence, and diligence to which plan participants are statutorily entitled under ERISA Section 1104(a)(1).” Click here to keep reading.

Source: PLANSPONSOR

Boosting Effectiveness of Retirement Plan Communications

“Words have the potential to inform, encourage and empower. But the wrong words can be powerful in negative ways, leaving people uncomfortable, overwhelmed or confused. Using the right words is especially critical in financial matters. Employees need to understand their retirement plan options so they can make the best decisions for their future, but the general public often misunderstands words that are commonly used by financial providers, employers and others in the retirement planning industry.” Click here to keep reading.

Source: PLANSPONSOR

Lawmakers Ask GAO to Examine Cybersecurity of Retirement System

ERISA, the Employee Retirement Income Security Act, governs the electronic disclosure of retirement plan communications and requires that plan fiduciaries take the necessary steps to protect plan participant’s confidential personal information. Now the U.S. Government Accountability Office has been asked examine the cybersecurity of the retirement system. Click here to read more.

Source: PlanSponsor

Ways and Means Moves Comprehensive Retirement Reforms Foreward

“The most powerful committee in the U.S. House of Representatives has advanced a powerful piece of retirement reform legislation – unanimously.

Signifying the importance of the issue, the first markup meeting of the House Ways & Means Committee for the 116th Congress on April 2 featured the approval of wide-ranging legislation to make it easier for businesses to offer retirement plans and for individuals to save for retirement."  Click here to keep reading.

Source: Napa.net

Safe Harbor Hardship Distributions Cannot Be Taken for Repayment of Student Loans

"The IRS confirmed in the Letter that because a safe harbor distribution may be made only for the prospective payment of education expenses, it cannot be made for the repayment of student loans. The IRS suggested that as an alternative to taking a hardship distribution, the participant may be able to get a loan from the plan.” To read more about the Safe Harbor Hardship Distribution click here

Source: Drinker Biddle

10th Circuit Tosses Massive ERISA Fiduciary Suit

“A federal appeals court has affirmed summary judgment in a class action suit involving 270,000 plan participants across more than 13,000 plans.

The suit was filed in 2015 by plaintiff John Teets, a participant in the Farmers’ Rice Cooperative 401(k) Savings Plan, which had contracted with Great-West for recordkeeping, administrative and investment services. The suit, which had been granted class action status on behalf of all plans and participants invested in the particular fund, alleged that Great-West (the defendant) acted as an ERISA fiduciary with respect to the fund because it exercised authority or control over the management of disposition of plan assets, specifically the Great-West Key Guaranteed Portfolio Fund, a fund that (as the court notes), “as the Fund’s full name suggests, is operated by Defendant.”

Click here to keep reading.

Source: Napa.net

IBM Files for Certiorari in ERISA Duty of Prudence Breach Claim

“Last week, International Business Machines Corp. (IBM) sought Supreme Court review of a Second Circuit decision favoring retirement plan participants claiming the plan’s fiduciaries breached their duty of prudence in failing to disclose pertinent information with respect to the declining value of the business.  Click here to keep reading.

Source: Holland & Hart