A DOL investigation found the business owner used benefit plan contributions for corporate and personal expenses.
Tag: Employee Retirement Income Security Act
The DC plan trust of Frontier Communications was 219-times more concentrated in Verizon stock than defendants felt was appropriate for the pension plan for which the company bore the investment risk, plaintiffs allege in a new stock drop lawsuit.
Several defendants, including M&T Bank and certain Wilmington Trust subsidiaries were found not to be fiduciaries and dismissed from the case; however excessive fee allegations and a prohibited transaction claim were moved forward against the bank’s retirement plan committee.
For its part, Schwab says the appellate court’s decision, which effectively invalidates agreements to arbitrate ERISA Section 502(a)(2) claims, conflicts with U.S. Supreme Court and Circuit precedent interpreting the Federal Arbitration Act (FAA) and ERISA.
While the first lawsuit focused on excessive recordkeeping, administrative and investment fees, the new lawsuit focuses specifically on the university’s practices with regard to revenue sharing.
The bank has agreed to pay $21.9 million to settle charges it benefited from including proprietary funds in its 401(k) plan.
In a decision granting victory to New York University, a federal judge noted “deficiencies in the Committee’s processes—including that several members displayed a concerning lack of knowledge relevant to the Committee’s mandate.” She has now been asked to amend the decision to remove committee members.
The panel concludes that the dispute against the University of Southern California fell outside the scope of the arbitration agreements that the participants signed.
The decision points to mailings and various other disclosures sent by Checksmart to the defendant over the years leading up to this litigation as reasons for applying ERISA’s shorter, three-year statute of limitations period.
What are the rules for locating missing retirement plan participants and what should plan sponsors do when they’re found?
Ruling in favor of a detailed motion to dismiss filed by defendants, the court cites a long list of precedent-setting cases, including the U.S. Supreme Court’s 2014 decision in Fifth Third v. Dudenhoeffer.
Lubbock National Bank, the ESOP’s trustee, has also agreed to take steps that will ensure it fulfills its fiduciary obligations in the future.
Connecticut decided to pass the law after Connecticut teachers regretted investing in certain products without being informed of fees and other charges.
The complaint alleges that at a certain point, the plan lost its church plan status as defined by ERISA and was required to adhere to ERISA funding rules.
A retirement plan consultant and an ERISA attorney offer tips for setting up, maintaining and following retirement plan documents.
Having prudent processes in place when making plan decisions is of utmost importance, and if a plan sponsor gets sued, having fiduciary liability insurance can be a big help.