Happy Friday, PLANSPONSOR readers! While we once considered whether health savings accounts (HSAs) would follow the movement of 401(k)s, an analysis shows this isn’t happening so far. Other studies report that retirement plan participants who take lump-sums often spend them too fast, and more folks are planning to rely on Social Security as a primary source of income in retirement. On the legal front, Schwab attorneys have asked a court to compel arbitration of self-dealing claims, and Fujitsu has failed to get its excessive fee suit dismissed. Enjoy this edition of PLANSPONSOR Weekend.
The presence and generosity of employer contributions to health savings accounts only make a slight impact on the enrollment rate, for example.Read more >
According to MetLife’s “Paycheck or Pot of Gold Study,” of the individuals who took a lump sum from a retirement plan, 21% say at some point they depleted it—taking just five and a half years on average to spend the dough.Read more >
According to the motion filed by attorneys, the fact that the plaintiff’s claims are brought pursuant to ERISA’s civil enforcement provisions does not in any way impede or limit the application of the arbitration provisions contained in the plan document.Read more >
U.S. Magistrate Judge Nathanael M. Cousins of the U.S. District Court for the Northern District of California found plaintiffs in a 401(k) excessive fee case against Fujitsu Technology and Business of America adequately pled the causes of action for breach of fiduciary duty under the Employee Retirement Income Security Act (ERISA).Read more >
Share the news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy.Read more >
The lawsuit says the target-date funds were selected for the plan despite having no performance history and, when they continued to underperform, they were not replaced with better options.
The lawsuit claims the trustee allowed an unauthorized person to take a distribution from a participant’s account and that the trustee is refusing to provide information to help remedy the situation.
Syed Nishat, with Wall Street Alliance Group, discusses potential effects on retirement plans if President Joe Biden is able to move forward his legislative agenda.
The Center for Retirement Research says half of American households are at risk of not being able to live at pre-retirement standards of living in retirement.
