Fiduciary Rules and Practices
In a ruling likely to make it harder—perhaps much harder—to dismiss excessive fee lawsuits, the U.S. Supreme Court has remanded for further consideration a lower court decision that had favored the fiduciary defendants.
In a unanimous decision[1] (Hughes v. Northwestern University et al., case...
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(Yet) another excessive fee suit has been filed against a billion dollar 403(b) plan by the Capozzi Adler law firm.
Filing suit as participants (and former employees) of the Boston Children’s Hospital Corporation Tax-Deferred Annuity Plan are Adilson Monteiro, Karen Ginsburg, Jason Lutan, and...
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The addition of an arbitration clause has—for the moment, anyway—paused an excessive fee suit. But what’s interesting is how the court applied the terms of that clause.
The suit had been brought by plaintiffs Lawanda Holmes, Ani M. Miller and Brittany E. Roxbury (“by and through their attorneys...
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Capozzi Adler PC[1] has found another target for excessive fee claims—and this one is a $10 billion 403(b) plan.
This time the defendants are the fiduciaries (and those who appointed them) of the Consolidated 403(b) Program of Mass General Brigham and Member Organizations—a plan that “at all times...
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Another fiduciary breach suit has been filed involving a series of target funds with a short, and allegedly poor, track record.
This time it’s participant-plaintiff Joanna P. Mattson bringing suit “individually and on behalf of the Milliman, Inc. Profit Sharing and Retirement Plan and a class of...
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After dying in 2020, a proposal to tax financial transactions—including those in 401(k) plans—is once again before the Garden State’s legislature.
During the start of the New Jersey legislative session this week, Assemblyman John McKeon (D-Essex and Morris) reintroduced legislation (A1757) on Jan...
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It’s taken a while for the details to emerge, but we finally know the terms of a proprietary fund settlement—cash and a plan design “twist.”
This suit—filed way back on Valentine’s Day, 2017—involves allegations by a participant in its own plan (and funds), one David G. Feinberg, on behalf of the...
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I’ve been writing a weekly column (and then some) for more than two decades now. Some are easier to write (and read)—and some hold up better (and longer) than others. These are some of my (and perhaps your) favorites from 2021.
Let me know what you think in the comments below… particularly if I...
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With cybersecurity of increasing concern to plan fiduciaries, participants—and regulators—a participant has sued his plan’s recordkeeper for breach of an implied contract to keep his data secure—as well as a breach of fiduciary obligation.
The suit was brought by one Eric Giannini “on behalf of...
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While the American Retirement Association is broadly supportive of its stated intentions, the Labor Department’s proposed rule regarding consideration of ESG factors in plan investments and proxy voting should adopt a more neutral stance.
In a Dec. 13 comment letter, the ARA recommends that in...
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A week ago, the U.S. Supreme Court heard oral arguments on an excessive fee suit involving Northwestern University’s 403(b) plan—in a case that could be a game changer in this type of litigation.
Their decision won’t be made for months, but pundits (including this one) have spent the hours since...
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Another university 403(b) excessive fee suit has settled for cash “…and other meaningful non-monetary relief.”
The settlement (Santiago v. Univ. of Miami, S.D. Fla., No. 1:20-cv-21784, motion for settlement approval 11/23/21) was reached between participant-plaintiffs Augustina Santiago, Lilly...
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In less than a year’s time, plaintiffs in an excessive fee case have wrangled a $2 million settlement.
This suit—filed in December 2020 by four former employees (Christian Harding, Patricia Giramma, Ronald Welch, and Lisa Harbour) of Massachusetts-based Southcoast Hospitals Group in the U.S....
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Tech Talk discusses what the responsibilities of a plan fiduciary are.
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Like the annual physical, an employee benefit audit may not be much anticipated, nor particularly welcome. Yet both are important and can be worthwhile. A recent blog entry offers some ideas on making the most of one.
In “Six Steps to a Smooth Employee Benefit Plan (EBP) Audit,” David Rich and...
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Noting that “the flawed complaint in this case flunks” ERISA’s pleading standards, the defendants in an excessive fee suit before the nation’s highest court say the case against them should be dismissed.
The Issue(s)
The issue that the plaintiffs—represented by the law firm of Schlichter Bogard...
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The Department of Labor has issued a temporary delay of the enforcement effective date for Prohibited Transaction Exemption 2020-02.
In Field Assistance Bulletin 2021-02, released Oct. 25, the DOL’s Employee Benefits Security Administration (EBSA) announced that from Dec. 21, 2021, through Jan....
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When compliance errors happen in plan administration, there are ways to fix them. Speakers at an Oct. 19 ASPPA Annual conference workshop session explained some of those ways.
“It’s telling how much time is spent in this area fixing errors,” remarked Robert M. Richter, Retirement Education...
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While the plan fiduciaries in the case chose to settle, the investment consultant for the plan took the case to trial—and won.
The former participant/plaintiff here (one Benjamin Reetz) claimed that the defendants here (Lowe’s, the Administrative Committee of Lowe’s Companies, Inc. and investment...
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Ali Khawar, Acting Assistant Secretary for the DOL’s Employee Benefits Security Administration (EBSA), strongly intimated today that there will be an extension of some kind on the enforcement effective date for Prohibited Transaction Exemption 2020-02.
In remarks made at the ASPPA Annual...
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