Compliance

The commission accused the two companies of providing misleading statements and alleged they failed to disclose conflicts to retail and retirement plan investors. 

The district court ruled that the retailer’s use of forfeited plan funds complied with both plan documents and longstanding regulations. 

The change will be effective September 30, according to a notice published in the Federal Register. 

RTX Corporation faces allegations of mismanaging retirement plan assets while Knight-Swift is moving toward a settlement in an excessive fee complaint. 

The letter comes weeks after an executive order that encouraged the agency to provide regulatory guidance on offering 401(k) plan investors access to alternative investments.  

The complaint alleged the company charged excessive fees and mismanaged an investment fund. 

The company and its fiduciary boards could still face trial over the remaining claims regarding handling of its $1.2 billion employee retirement savings plan.

The appeal has been filed with the U.S. 3rd Circuit Court of Appeals after the lower court marked the case closed.

The group is seeking an extension to the deadline for implementing an infamously complicated provision of the SECURE 2.0 Act.

The higher court vacated the dismissal of a prohibited transaction claim, citing the recent Supreme Court decision in Cunningham v. Cornell University. 

In the complaint, plaintiffs represented by Schlichter Bogard, allege that the recordkeeper and investment company ‘mislead retirement plan participants’ to serve its own benefit. 

New guidance is unlikely to lead to a swift increase in adoption, but a safe harbor looks like the only option that could move the needle. 

Courts continue to offer mixed opinions in excessive fee and forfeiture cases, even as volume of case law builds.

The department asked for an extension lasting through October to consider its options in a federal case challenging the Biden-era regulation.

The changes concern premium rates, due dates and plan termination procedures.

As case law continues to see mixed results, U.S. District Judge Max Cogburn Jr. ruled the plaintiffs’ claims may continue, in the process rejecting a ‘settlor capacity’ argument.

The decision comes as the department plans to follow President Donald Trump’s executive order to ‘clarify’ its stance on use of the investments in defined contribution plans.  

A federal judge in Virginia allowed ERISA claims to continue and ruled the plaintiffs may amend the complaint to fix an issue of standing.

The U.S. Chamber of Commerce, the ERISA Industry Committee and others filed an amicus brief stating that ‘speculative’ allegations should be dismissed.

Employers who adopt the plans in 2025 must notify their employees by September 1 and have the plans up and running by October 1.