Happy Friday, PLANSPONSOR readers! The week started out with the announcement of an acquisition of Aon Hewitt’s HR and Benefits administration business. Then we faced another development affecting the retirement plan industry—President Donald Trump’s Labor Secretary nominee dropped himself out of consideration. Trump seems to have reversed course with his newest nominee. In other news, just as one retirement plan provider agreed to settle a self-dealing suit over its retirement plan for employees, another provider was just charged with self-dealing. Finally, we get research from Willis Towers Watson about a new way of thinking about diversification in this new market environment. All this and more in this edition of PLANSPONSOR Weekend!
The day before his Senate confirmation hearing was set to kick off, Department of Labor (DOL) Secretary nominee Andrew Puzder withdrew himself from consideration.
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Days after the surprise withdrawal of Andrew Puzder as President Trump’s Labor Secretary nominee, the White House is now confirming their new pick for the job, former member of the National Labor Relations Board R. Alexander Acosta.
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A lawsuit accuses T. Rowe Price and its affiliates of not only offering just proprietary funds in the company’s 401(k) plan, but only offering the highest-priced versions of those funds.
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Plaintiffs in the lawsuit argue that passive funds would have resulted in better returns net of fees that the actively managed funds offered in the plan.
The lawsuit says the so-called “incentive” Yale offers for participating in the wellness program are in fact a “penalty” that violates non-participants’ right, and it notes that the Equal Employment Opportunity Commission (EEOC) withdrew the incentive portions of its wellness program rules.
Some legislative proposals, such as the SECURE Act, may address challenges to retirement income adequacy women face, but there are also things retirement plan sponsors can do.
