A federal judge denied dismissal of plaintiffs’ allegations that a prudent fiduciary would have chosen one—rather than two—recordkeepers; that a prudent fiduciary in like circumstances would have solicited competitive bids; and a claim regarding recordkeeping fees.
Tag: retirement plan litigation
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.
Matrix is being sued for violating its fiduciary duties because it did not verify that the transfers were authorized by the participants in the 403(b) plans or permissible under the terms of the plans.
A newly filed challenge to St. Joseph Health Services of Rhode Island’s retirement plan claims the plan at some point failed to be a church plan, and entities administering or associated with the plan hid this to keep from adhering to funding rules as defined by ERISA.
In a brief supporting a motion to dismiss a case against George Washington University related to the management of its 403(b) plan, the defendants note that 403(b)s have always looked differently and were set up for a different purpose than 401(k) plans.
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.
The suit challenges fees paid to provider TIAA.
According to the complaint, the defendants removed a large number of established funds in the plan that were performing well (at Hewitt’s urging), and replaced them with an unproven set of newly-launched funds from Hewitt that have consistently underperformed.
The bank admitted that because of “a system error,” revenue sharing payments were not credited to the retirement fund, but says the error has been fixed.
The Department of Labor sued Sonnax Industries, company officers and ESOP fiduciaries Tommy Harmon and Frederick Fritz, and Illinois-based First Bankers Trust Services Inc. in December 2016, alleging the fiduciaries had the plan overpay for Sonnax Industries stock by millions of dollars.
A federal appellate court agreed with the Commissioner of Internal Revenue that Pizza Pro Equipment Leasing incorrectly calculated the limitation on the plan’s annual benefit and therefore made non-deductible contributions to the plan.
The 9th Circuit depended on its own precedent in finding that unpaid contributions to employee benefit funds are not plan assets and, therefore, the company owners are not fiduciaries under ERISA with respect to unpaid withdrawal liability.
The appellate court disagreed with a district court conclusion that the multiemployer plan had not shown sufficient continuity of business operations to support successor liability.
The lawsuit filed by MBA Engineering on behalf of its 401(k) and cash balance plans also accuses Vantage Benefits, MBA's TPA and recordkeeper, of stealing money from approximately 20 other retirement plans.