The retirement plan industry will be closely watching cases taken on by the Supreme Court regarding when “actual knowledge” occurs for plaintiffs and whether participants can show harm for fiduciary breaches when a defined benefit (DB) plan is well-funded. Meanwhile, a case already decided by the high court could have implications for future retirement plan litigation. Form 5500 filings are due soon, and while some plan sponsors may dread the annual financial audit, one auditor suggests it can help plan sponsors identify mistakes and improve compliance. If mistakes are found, many can be self-corrected. Enjoy this edition of PLANSPONSOR Weekend!
The investment committee for two Intel Corporation retirement plans asked the court to determine whether the provision of plan documents, in itself, creates for participants “actual knowledge” of an alleged fiduciary breach under the Employee Retirement Income Security Act (ERISA).Read more >
ERISA allows plan participants to sue to remedy demonstrable harms they have suffered as a result of fiduciary breaches. Less clear is how to apply ERISA’s remedies when a breach is alleged to have occurred within a well-funded pension plan.Read more >
In testimony to the ERISA Advisory Council, James Haubrock, with the American Institute of Certified Public Accountants (AICPA), explained how using findings from retirement plan financial audits can help plan sponsors improve their processes and compliance.Read more >
The purpose of a retirement plan and the demographics of its participants will help plan sponsors decide what types of investments they need to use to take participants from accumulation to decumulation.