MFS Accused of Engaging in Prohibited Transactions in 401(k)s
A lawsuit claims MFS used its 401(k) plans “as an opportunity to promote MFS’s mutual fund business and maximize profits at the expense of the plans and their...
Compliance
PBGC Requests More Time to Collect Multiemployer Merger Information
The agency says it uses information submitted by plan sponsors under the regulation to determine whether mergers and transfers conform to the requirements of ERISA Section 4231.
American Airlines Agrees to Settle Proprietary Funds Lawsuit
The gross settlement amount is $22 million.
Brown University Faces Familiar Allegations in 403(b) Lawsuit
Individual annuity contracts and a large plan investment lineup are targets in the Brown University lawsuit, just as they are with most other lawsuits against higher education institutions’...
IRS Changes Pre-Approved Plan Opinion Letter Program
The IRS says it is modifying its historic approach to pre-approved plans in order to encourage employers that currently maintain individually designed plans to convert to the pre-approved...
Short Window Opens for Fiduciary Rule RFI Responses
EBSA hopes the responses submitted to this RFI can “form the basis of new exemptions or changes/revisions to the rule and prohibited transaction exemptions.”
DOL Brief Defends Fiduciary Rule Despite Ongoing Review
Long-term, DOL staff is concerned about maintaining the department’s broad litigation and enforcement capabilities in the retirement plan services marketplace.
IRS Issues 2017 Cumulative List of Pre-Approved Plan Requirements
The 2017 cumulative list includes provisions for Roth conversions, using lifetime income products in target-date funds (TDFs) and the use of qualified longevity annuity contracts (QLACs), among other...
ERISA Suit Questions Money Market Performance, Recordkeeping Fees
Because revenue-sharing payments are asset based in the plan, plaintiffs argue, “they bear no relation to a reasonable recordkeeping fee and can provide excessive compensation.”
Connecticut Passes Conflict-of-Interest Rule for Non-ERISA 403(b)s
The law applies to any company that administers a 403(b) retirement plan offered by a political subdivision of the state.
DOL Issues RFI About Fiduciary Rule
The request for information asks whether provisions of the rule already in place should be delayed further.
ESOP Did Not Meet Burden of Proof in Case Regarding Failed Transaction
An appellate court first discussed where the burden of proof lies in ERISA cases.
Labor Secretary Says SEC Will Work With DOL on Fiduciary Rule
In addition, Acosta said the DOL’s budget proposal funds an effort to improve ERISA disclosures to retirement plan participants.
Asset-Based Fees Questioned in Nationwide ERISA Challenge
The text of the complaint takes a deep dive into the services generally provided by recordkeepers and administrators of ERISA plans—pushing the conclusion that asset-based fees are less...
DOL Officially Pulls Back Final Rules for Government-Run Plans
The agency says resolutions passed by the president invalidate its earlier final rules.
Waddell & Reed Charged in 401(k) Self-Dealing Suit
The lawsuit claims fiduciaries of the Waddell & Reed 401(k) plan breached their fiduciary duties and engaged in prohibited transactions in the selection of the plan’s investment lineup.
Washington University in St. Louis Faces Second 403(b) Lawsuit
The strongly worded complaint says the plan fiduciaries “utterly abdicated their fiduciary duties to act prudently and loyally” by turning the plan over to TIAA and Vanguard Group.
Suit Challenging Voya’s Relationship With Financial Engines Dismissed
Voya Retirement Advisors was found not to be an ERISA fiduciary with respect to its compensation in an agreement with Nestle’s 401(k) plan.
Judge Dismisses ERISA Suit Against Fidelity Stable Value Decisions
The suit accused the firm of engaging in imprudent investment strategies for the Fidelity Group Employee Benefit Plan Managed Income Portfolio Commingled Pool (MIP).
Court Rules for Putnam in Excessive Fee Suit
A district court ultimately found that since plaintiffs did not establish a case in which a particular fiduciary breach caused a loss to the plan, their arguments fail.