The Employee Retirement Income Security Act (ERISA) requires retirement plan sponsors to act in the best interest of plan participants, not to make decisions to avoid lawsuits. However, lawsuits can offer insights into how to act in the best interest of plan participants. Plan sponsors also need to make sure they understand all the laws affecting their retirement plans—qualified and nonqualified. Guidance from agencies can help plan sponsors with plan administration issues—such as the IRS’ recent guidance about uncashed checks. And, in some cases, state laws guide plan administration and design—especially for K-12 403(b) plans. Enjoy this edition of PLANSPONSOR Weekend!
They argue that retirement plan disclosures give retirement plan participants the “actual knowledge” required by ERISA, whether participants read them or not, and that an appellate court decision in the Intel case exacerbates the risk of hindsight bias in ERISA cases.Read more >
A litigation firm has listed what it is investigating for potential lawsuits over target-date funds (TDFs) in retirement plans, and an ERISA attorney makes suggestions for how plan fiduciaries may avoid such suits.Read more >
A Revenue Ruling addresses whether an individual’s failure to cash a distribution check received alters the employer’s obligations with respect to withholdings and reporting under the Internal Revenue Code.Read more >