Tag: Fees

The complaint suggests defendants “larded the plan with excessively expensive sub-advised accounts” that paid excessive fees to the recordkeeper John Hancock.

The ultimate impact of President Trump’s new executive order is likely to be more symbolic than substantive when it comes to the real-world activities of retirement plan fiduciaries and investment managers. 

Fidelity faces a third lawsuit alleging the company collects “secret kickback payments” from mutual fund providers on its recordkeeping platform—claims the company strongly denies.

The appellate court decision tests ERISA’s restrictions on transactions between fiduciaries and non-fiduciary third parties, referred to as “parties in interest.”

The plan sponsor was previously ordered to make reforms such as using lower-cost share classes and conducting an open recordkeeping RFP; the final settlement includes $55 million in monetary compensation.

The defense benefited strongly from the fact that expert witness testimony given in favor of plaintiffs was rejected by the judge as not being fully relevant or credible.

A district court in California has issued a mixed ruling in a self-dealing lawsuit filed against Schwab Retirement Plan Services and other defendants.

The district court had several times ruled against the firm in summary dismissal and discovery decisions—but the firm has prevailed against ERISA fiduciary breach claims after an 11 day trial.

Three Mayer Brown ERISA attorneys discuss the current litigation landscape and offer practical strategies for promoting compliance in 2019. 

Both parties agreed to dismiss the litigation under Federal Rule of Civil Procedure 41(a), and each party will bear its own attorneys’ fees and expenses.

The colorfully worded opinion chides plaintiffs for failing to acknowledge the unique character of 403(b) retirement plans—including their common use of annuities and multiple recordkeepers.

In his opinion, the district court judge says an ERISA complaint of this nature does not need to describe in exhaustive detail the ways in which plaintiffs believe defendants breached their fiduciary duties.

They are centered around three key themes: 1) Secure your foundation, 2) Achieve greater prosperity and 3) Inspire confidence.

Experts at the Best of PSNC 2018 event in Boston reviewed plan sponsors’ use of different fund types and fee structures, offering up tips for better analysis of investment and recordkeeping expenses.

And a majority, 65%, say it is tougher now to get ahead financially than it was before the financial crisis, Natixis found in a survey.

The court holds that bundling services or revenue sharing are common and acceptable investment industry practices that frequently inure to the benefit of ERISA plans.

The court granted the Principal defendants’ motion for summary judgment on all counts in a case questioning guaranteed investment contract arrangements.

“There is a lot of value in having conversations about retirement income that are not just product driven,” said Josh Cohen, head of institutional defined contribution for PGIM.