(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
May 22nd, 2018

2018 Plan Sponsor of the Year: Boston Medical Center

Boston Medical Center does not just say goodbye when employees retire. Read more >

ERISA Excessive Fee Suit Filed Against University of Rochester

A participant in the University of Rochester Retirement Program has filed a lawsuit alleging that plan participants have paid an estimated $72 million in in recordkeeping, distribution, and mortality risk fees to provider TIAA. The lawsuit claims that since the University of Rochester’s 403(b) plan has more than $4.2 billion in assets, it has tremendous bargaining power to demand low-cost, high-quality administrative services; however, it instead has failed to adequately take proper measures to understand the real cost to plan participants for TIAA’s services, to properly inform participants of the fees they were paying to TIAA as required by law, and to act prudently with such information. Read more >
ASK THE EXPERTS
Groom Law Group and Cammack Retirement Group will field your questions concerning 403(b) plans and regulations. Email rebecca.moore@strategic-i.com with Subject Ask the Experts


Plan Sponsor Interpretation Must Be Given Deference in Lawsuits Challenging Plan Terms

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 in a case challenging the calculation of lump-sum payments from a defined benefit (DB) plan sponsored by Norton Healthcare. Read more >

Is There Any Hope for 403(b)s to Be Able to Use CITs?

With excessive fee lawsuits extending to the 403(b) space, and account assets growing larger with time, 403(b) plan sponsors are inquiring about offering collective investment trusts (CIT)s on their plan menu—which are like mutual funds, but tend to be at a lower cost. These lower-cost funds are growing more popular in the 401(k) market, but are not available to most 403(b) plans. Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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