The likelihood the program will remain solvent after FY 2026 is now less than 1%.
According to the text of the complaint, the act that created the California Secure Choice program “violates the Supremacy Clause of the United States Constitution because it is expressly preempted by the Employee Retirement Income Security Act of 1974.”
If a short plan year is created when a plan is amended, terminates or is newly adopted, proration of the Internal Revenue Code annual compensation dollar limit and limit on DC plan additions will be needed.
Non-electing church plans are exempt from the Employee Retirement Income Security Act (ERISA) provisions pertaining to participation, coverage, and vesting; however, these plans are subject to the requirements for participation, coverage and vesting that were in effect on September 1, 1974, prior to the enactment of ERISA.
Among other things, the commission would be charged with submitting to Congress recommendations on how to improve or replace existing private retirement programs.
The court found plaintiffs failed to state a claim for relief based on ERISA’s duty to diversify and failed to state a claim for failure to engage in an adequate process for evaluating the prudence of continuing to hold the ConocoPhillips Funds.
Underscoring the victory for Northwestern University and potentially giving some hope to other similarly positioned defendants, all pending motions were denied and the case has been terminated.
The DOL found the company's president and CEO did not process any distribution requests submitted by 401(k) plan participants, among other ERISA violations.
Reeder recently told the Joint Select Committee on Solvency of Multiemployer Pension Plans that insolvency of the PBGC multiemployer program could result in participants in failed multiemployer plans receiving a very small fraction—an eighth or less, on average—of the current benefit guarantee level.
The compliance assistance program will increase awareness and understanding about basic fiduciary responsibilities when operating a retirement plan.
In addition to a monetary payment, the university has agreed to structural changes to its 403(b) plans.
The Implementation Guide answers questions about Statement No. 68, “Accounting and Financial Reporting for Pensions” and Statement No. 74, “Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.”
If there is a complete discontinuance of contributions in a profit sharing plan, including a 401(k) plan, the plan is treated as terminated for vesting purposes and affected employees must be 100% vested in their accrued benefit.
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.