The 6th Circuit noted that Firestone Tire & Rubber Co. v. Bruch, in which an arbitrary-and-capricious standard of review is required by the court if the plan “gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan,” should have been used by the district court.
The district court’s new decision comes after its previous move denying defendants’ motion for summary judgment against plaintiffs’ claims, which cover a variety of fiduciary breach allegations; a new ruling is now forthcoming.
The suit challenges fees paid to provider TIAA.
According to the complaint, the defendants removed a large number of established funds in the plan that were performing well (at Hewitt’s urging), and replaced them with an unproven set of newly-launched funds from Hewitt that have consistently underperformed.
The hearing focused on four bipartisan proposals, and hearing witnesses expressed their support for these proposals, while some also urged legislators to move forward on the Retirement Enhancement and Savings Act of 2018 (RESA).
An investigation conducted by the DOL found the past trustee had issued checks from the plan’s checking account to the House of Lights, himself and others for $1,308,862, which violated ERISA, for over two years.
Philips North America agreed to pay $17,000,000 to settle a 401(k) excessive fee suit one day after the complaint was filed.
For an individual with family coverage, the 2019 health savings account (HSA) contribution limit is $7,000, up from the recently reset $6,900 limit for 2018.
A DOL investigation found the trustees used plan assets for businesses and properties owned by themselves and family members.
The bank admitted that because of “a system error,” revenue sharing payments were not credited to the retirement fund, but says the error has been fixed.
The bill would amend Section 7(a) of the Small Business Act, expanding loans to small business employers for the purpose of transferring ownership of the company to employees.
More than 135 individuals testified that Season 52 managers inquired or commented about age.
The Department of Labor sued Sonnax Industries, company officers and ESOP fiduciaries Tommy Harmon and Frederick Fritz, and Illinois-based First Bankers Trust Services Inc. in December 2016, alleging the fiduciaries had the plan overpay for Sonnax Industries stock by millions of dollars.
Organizations that fail to file annual Form 990 returns for three consecutive years will see their federal tax exemptions automatically revoked, which will have an effect on offering 403(b) retirement plans.
Changes to the treatment of executive compensation and NQDC plans may look unfavorable, but sources say they remain a valuable benefit for employees.
The agency noted that some financial institutions have devoted significant resources to comply with the BIC Exemption and the Principal Transactions Exemption and may prefer to continue to rely upon the new compliance structures.
Attorneys anticipate a big push to get retirement plan-related legislation passed before mid-term elections could have a big impact on Congressional retirement plan agendas.
Participants in the Lowe’s 401(k) plan have filed an ERISA complaint against their employer and Aon Hewitt Investment Consultants over alleged imprudent investment decisions.
The decision puts another layer of finality on the fate of the now-defunct Department of Labor fiduciary rule expansion, meaning the compliance landscape has shifted yet again for plan sponsors.
Fred Reish, partner at Drinker, Biddle and Reath, told attendees of the Plan Sponsor Council of America 71st Annual National Conference, from his perspective, plan sponsors have a “best practices hat,” meaning “plan sponsors have an option of going beyond looking at what benefits the participants or employer. Meeting minimal objectives of the law is not the goal.”