Setting defaults too low, choosing the wrong default investment and offering company stock as an investment option could result in unintended consequences, BlackRock found.
Tag: Company Stock
Sixty-four percent of participants in their 20s own a TDF.
In dismissing the stock drop challenge, the judge offers an illuminating review of what is required by ERISA’s duty of prudence; discussion of counts alleging breaches of the duty of loyalty and the duty to monitor is much briefer.
According to one experienced capital markets attorney, the SEC’s move this week to amend Securities Act Rule 701 is an important one and could lead to more private employers issuing equity compensation.
Not only does the lawsuit claim ConocoPhillips stock does not meet ERISA’s definition of “employer securities,” but it says participants suffered millions of dollars in losses as the stock price dropped dramatically.
A federal district court ruled the plaintiffs did not meet all the pleading standards set forth by the U.S. Supreme Court.
Employees say they use company stock acquired through their ESPP to help pay down debt, add to their retirement savings, finance real estate or home improvement projects, or simply set aside for a rainy day.
The court granted summary judgment to the plaintiffs and ordered their benefits be paid along with prejudgment interest.
401(k) investors in their 20s are investing much less in company stock than their counterparts did in 1996 and plenty more in balanced funds, a joint study by the ICI and EBRI finds.
The firm is being challenged in a New Jersey district court for alleged imprudence in the management of its employee stock ownership plan.
“Anyone who received income from equity compensation or sold shares in 2016 must understand the related reporting on IRS tax forms to avoid costly errors on tax returns.”