House Committee Introduces ‘Securing a Strong Retirement Act of 2020’
The legislation proposes expanding automatic enrollment in retirement plans, and expanding retirement savings options for nonprofit employees, among other things.
Compliance
Contribution Limits Unchanged for 2021
Most contribution and benefit limits for employer-sponsored plans remain unchanged for 2021, according to the IRS.
IRS Issues Guidance About Retirement Plan Accounts Transferred to Unclaimed Property Funds
A revenue ruling addresses income tax withholding and reporting, and a revenue procedure adds to the list of waivers of the 60-day rollover requirement.
Trump Administration to Look at Pensions Transferred to PBGC
A memorandum issued by the president first orders three departments to review the situation for Delphi retirees, then orders a review of pensions currently trusteed by the PBGC.
The DOL’s ESG Proposal and DB Plans
Defined benefit plan fiduciaries can expand on their evaluations of ESG investments to show they are financially beneficial and not just a philosophical choice.
Bill Would Fill Gaps in Previous Retirement Legislation
The SAVE Act would allow 403(b) plan sponsors to join open MEPs and incentivize the creation of ESOPs, among other things.
Advisers Can Spearhead Retirement Plan Committee Setup and Training
Plan sponsors can trust advisers to help with committee decisions and training and expect input from ERISA attorneys.
Another Lawsuit Challenges Fund Manager Strategy During COVID-19 Market Crash
Allianz Global Investors is again accused of not following the promised investment strategy for its Structured Alpha Funds.
Will DOL Independent Contractor Proposal Result in More Workers With Benefits?
The proposal is intended to offer processes to clearly determine a worker’s status.
Settlement Reached in Insperity 401(k) Excessive Fee, Self-Dealing Suit
Among other things, the lawsuit accused Reliance Trust Co. of selecting funds for the plan that would benefit itself.
Lawsuit Against Nestle Takes New Approach at Challenging Managed Account Fees
A prior lawsuit against its 401(k) plan recordkeeper and managed account provider was dismissed, with a federal judge saying any claim based on the allegedly excessive fee arrangement...
Social Security Announces COLA for 2021
In addition, the maximum amount of earnings subject to Social Security tax—used to determine the taxable wage base for permitted disparity in DC plan contributions—will increase.
DuPont Pension Plan Participants’ ERISA Lawsuit Dismissed
A federal district court judge again found no fiduciary acts occurred when a corporate restructuring resulted in DuPont being a subsidiary of a spinoff company.
Lessons From a Rare ERISA Excessive Fee Suit Dismissal
The complexity of retirement plan lawsuits often makes district court judges reluctant to approve early dismissal motions plaintiffs, but Salesforce has succeeded in defeating a complaint alleging it...
Plaintiffs Abandon Their Lawsuit Over Principal CIT TDFs
The suit had alleged fiduciary breaches regarding the selection and monitoring of underlying investment options for collective investment trust TDFs offered in retirement plans.
Dismissal Ruling in Salesforce ERISA Litigation Rejects Overly Broad Arguments
The ruling states that actively managed mutual funds and share classes that include revenue sharing can have their place in prudently run retirement plans.
Supreme Court Refuses to Hear Lawsuit Over Prohibited Transactions Related to a GIC
Whether Principal acts as a fiduciary when setting the crediting rate for its GIC goes back to a federal district court to decide.
Supreme Court Asked to Review Sufficiency of Excessive Fee Imprudence Claims
In a case against Northwestern University, the petitioners ask whether allegations that a plan paid or charged its participants fees that exceeded fees for alternative available investment products...
Supreme Court Denies Review of PE Firm Withdrawal Liability Case
The denial lets stand an appellate court decision that two entities of Sun Capital Partners, which bought a firm that withdrew from a multiemployer plan, are not liable...
IRS Issues Final Rule on Default Withholding for Periodic Payments
For 2021, the default rate of withholding for certain periodic retirement and annuity payments will remain the same as it was prior to the Tax Cuts and Jobs...