What are the rules for locating missing retirement plan participants and what should plan sponsors do when they’re found?
Tag: Employee Retirement Income Security Act
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.
Noting that the bank already made restitution to the participants under an IRS closing agreement, the 4th Circuit agreed with a lower court that the bank did not profit from its transfer of 401(k) assets to create a cash balance plan.
The new claim is related to the defendants’ alleged failure to protect plan assets by allowing third parties to market services to participants.
Plaintiffs allege the firm added poorly performing proprietary mutual funds to their plan.
A federal district court judge found that additional allegations that alternatives to continuing to offer the company stock would lead plan fiduciaries to find they would not do more harm than good were not context-specific enough to the case.
Non-electing church plans are exempt from the Employee Retirement Income Security Act (ERISA) provisions pertaining to participation, coverage, and vesting; however, these plans are subject to the requirements for participation, coverage and vesting that were in effect on September 1, 1974, prior to the enactment of ERISA.
In addition to a monetary payment, the university has agreed to structural changes to its 403(b) plans.
A DOL investigation found the trustees used plan assets for businesses and properties owned by themselves and family members.
Fred Reish, partner at Drinker, Biddle and Reath, told attendees of the Plan Sponsor Council of America 71st Annual National Conference, from his perspective, plan sponsors have a “best practices hat,” meaning “plan sponsors have an option of going beyond looking at what benefits the participants or employer. Meeting minimal objectives of the law is not the goal.”
The court found participant claims did not meet standards set forth in Fifth Third Bank v. Dudenhoeffer.
While some claims were dismissed, others were moved forward.
Although the case involves an employer-provided life insurance plan, it has lessons for what constitutes a QDRO for all ERISA plans.