Skip to main content

You are here

Fiduciary Rules and Practices

The Department of Labor (DOL) sent a new version of a proposed fiduciary rule to the Office of Management and Budget (OMB) late Sept. 8 for review.   Known officially as “Conflict of Interest in Investment Advice,” it would redefine fiduciary investment advice under ERISA. According to a post on... READ MORE
The two top Republican lawmakers serving on the House and Senate committees with jurisdiction over ERISA have called on the Department of Labor (DOL) to halt any further changes to the definition of fiduciary.  The Aug. 31 letter from Rep. Virginia Foxx (R-NC), who is chair of the House Education... READ MORE
Robinhood’s bid to undo the Bay State’s fiduciary rule holding broker-dealers to the same standard as investment advisers hit a roadblock after the state’s high court reversed a lower court’s ruling that the Massachusetts Secretary of Commonwealth lacked authority to adopt the rule. The Aug. 25... READ MORE
Almost 26,000 New York Life customers had their names and Social Security numbers exposed to a data breach, the latest in a massive hack that affected hundreds of companies and millions of Americans. The hack occurred in late May and involved Progress Software, the provider of MOVEit transfer... READ MORE
Cybersecurity—and its importance to retirement plans and savings—are top of mind. In MarketBeat, John Iekel covers Assistant Secretary of Labor Lisa M. Gomez’s suggestions on reducing the risk of fraud or loss to a retirement account. READ MORE
The allegations in a new excessive fee suit are familiar—but the plaintiff has clearly been attentive to pleading failures that have led to other, similar cases being dismissed. Commenting that “the proliferation of 401(k)plans has exposed workers to big drops in the stock market and high fees... READ MORE
One of the first excessive fee suits filed against university 403(b) plans has (finally) come to a conclusion with a jury verdict in favor of the fiduciary defendants—with an odd twist (or two). The suit against Yale University was one of the first to be filed in this area—and by Schlichter Bogard... READ MORE
Another target-date fund family has been…targeted…in a fiduciary breach suit that claims plan fiduciaries failed to prudently review—and remove—underperforming target-date funds. The target-date funds in question this time are the JPMorgan SmartRetirement series, while the plans in question are... READ MORE
After months of speculation, the Department of Labor’s (DOL) newly released Spring 2023 regulatory agenda confirms that a fiduciary rule rewrite could be released later this summer; it also provides other key insight for the department’s regulatory plans for the coming months.   In fact, the fall... READ MORE
A federal judge has dismissed a multi-billion plan fiduciary's motion to dismiss an excessive fee/fiduciary breach suit.   The defendants in this case—filed in the U.S. District Court for the Eastern District of Michigan in early 2021—are the fiduciaries of the Magna Group of Companies Retirement... READ MORE
The parties in a two-year old 403(b) excessive fee suit against a $2.3 billion plan have come to terms.  The suit (Garnick v. Wake Forest Univ. Baptist Med. Ctr., M.D.N.C., No. 1:21-cv-00454, complaint 6/4/21) was filed in June 2021 in the U.S. District Court for the Middle District of North... READ MORE
The terms of a quickly settled excessive fee suit involving a 403(b) plan have come to light. The plan fiduciaries here are Springfield, Massachusetts-based Baystate Health Inc. — and they were sued just last Nov. 17 by participant-plaintiffs Michael Chechile and Sonia Lopez (who were represented... READ MORE
Some say default choices well-intentioned, but also intrusive and demeaning, writes Nevin E. Adams, JD, in MarketBeat. Nonetheless, it appears that there are employees who WANT that support. All of which, he says, calls to mind a new standard.  READ MORE
An excessive fee suit with a “complicated procedural history” and one that a federal judge says “appears to be a lawsuit in search of a theory” has, once again, culminated in a win for the plan fiduciaries. This time we’re talking about the suit alleging that the Georgetown University 403(b) plan... READ MORE
Following a United States Supreme Court directive, a federal court has reconsidered its earlier conclusions in an excessive fee case. Now, it’s been awhile, but you may recall that the case[1] (April Hughes et al. v. Northwestern University) had been dismissed by this same Seventh Circuit back in... READ MORE
A $1.6 billion 403(b) plan has settled an excessive fee suit for $6 million. The suit — brought by participants Susan McNeilly and Carla Martz of the Spectrum Health System 403(b) plan and represented in that action by the law firm Capozzi Adler[1] — had made the “usual” assortment of allegations... READ MORE
The parties in an excessive fee suit have struck a deal — mere months after the suit was filed. The plan fiduciaries here are Springfield, Massachusetts-based Baystate Health Inc. — and they were sued just last Nov. 17 by participant-plaintiffs Michael Chechile and Sonia Lopez (who were... READ MORE
The Labor Department has weighed in on an excessive fee case on behalf of the participant-plaintiffs — asserting that the district court made a bad call on the burden of proof. The case under appeal involves Home Depot, and a decision last fall by Judge Steven D. Grimberg in the U.S. District... READ MORE
The parties in one of the first university 403(b) excessive fee suits — by participant-plaintiffs represented by the Schlichter law firm — has come to terms on the eve of going to trial.  The suit, filed in August 2016, involved two plans sponsored by the University of Southern California (the... READ MORE
Efforts by proponents to carve out an exemption to a Nevada state fiduciary law for ERISA-covered retirement plan advisors continued this week, with the American Retirement Association (ARA) submitting a letter supporting the exemption.  Nevada State Senate Bill 383 (SB 383), effective July 1,... READ MORE