The lawsuit contended that among defined contribution plans with more than $1 billion in assets, the average plan has costs equal to 0.33% of assets per year; in 2013, total fees for the Fujitsu plan amounted to approximately 0.88% of plan assets.
The American Retirement Association says that by lowering small business income tax rates to 27% but not applying that to taxes on 401(k) withdrawals for small business owners from the 35% individual tax rate, this creates a disincentive for small business owners to contribute to their retirement plan, or even offer one to their employees.
Based on Great-West’s investigation and the work of FBI agents, it appears that unauthorized individuals have been fraudulently obtaining access to funds held in a small number of retirement accounts.
The agency began issuing these lists when it ended the determination letter program for individually designed retirement plans.
The complaint seeks to state a claim—without relying on hindsight—by arguing the underperformance of a large cap fund was “virtually guaranteed because it contained a serious design flaw from inception.”
“IHI cannot delegate fully its statutory responsibilities under ERISA,” a federal judge says in her opinion.
At this interim juncture it seems that essentially all of the changes to 457(b) and 403(b) plans that were being contemplated by the Senate have been dropped.
Last month, J.P. Morgan agreed to pay $75 million to settle litigation accusing it of investing stable value funds in risky investments.
Each having passed their own version of the bill, the House and Senate now enter the conference committee phase, during which key legislators will attempt to craft a unified version of the Tax Cuts and Jobs Act.
Similar to many excessive fee lawsuits filed against single-employer plans, the complaint accuses a multiemployer plan of failing to leverage its bargaining power to obtain lower investment and recordkeeping fees.
Among other adjustments viewed as vital to the expansion of open multiple employer plans, the bill would remove the “one bad apple” rule and the commonality requirement.
The results of a fiduciary primer quiz survey prove once again that institutional investing can be a tricky topic for even the most experienced investment committee members.
The Retirement Plan Modernization Act would raise the automatic IRA rollover limit, based on the rate of inflation, from $5,000 to $7,600 and allow for future increases to be indexed for inflation.
Before certifying a class in the litigation, a federal judge determined that the named plaintiffs need not have invested in all funds challenged in the suit in order to represent 401(k) participants that invested in the funds.
A recent appellate court decision underscores the important differences in anti-cutback vesting requirements that exist between “top-hat” plans and retirement benefits for lower-compensated employees.
The Internal Revenue Service uses the Social Security Administration’s taxable maximum to determine the taxable wage base for permitted disparity in defined contribution (DC) plan contributions.
The new delay is for 18 months.
The fund would be used to make loans to multiemployer defined benefit (DB) plans that are in critical or declining status or that are insolvent but not terminated.
Throughout the complaint, the plaintiff alleges that the plan’s fiduciaries’ lack of a systematic and unbiased review process caused participants to pay an unnecessarily high expense ratio for both Wells Fargo proprietary investments and nonproprietary investments.
The request regards distress terminations and PBGC-initiated terminations of DB plans.