Practical HR Tips, News & Advice. Updated Daily.
So-called stock drop cases, in which defined contribution plan participants sue employer plan sponsors for breach of fiduciary duty when the market value of company stock or other equity options in 401(k) investment menus declines severely, have become common. But for defined benefit sponsors, this threat is less onerous. A ruling the U.S. District Court […]
Working with investment managers on optimal asset mixes and maximizing returns long has been important for employer retirement plan sponsors and committees. But in recent years it also has become advisable for those overseeing fund managers to understand responsible investing principles — at the same time they have become more important for many plan participants. […]
A recent federal appeals court decision serves as a reminder that communicating with employees about their options for benefits calculation methods in defined benefit retirement plans is a very important aspect of preparing them adequately for retirement. Some DB plans offer more than one way to accumulate assets, and allow participants to choose the method […]
By Austen K. Townsend The Supreme Court’s decision on Section 3 of the Defense of Marriage Act in U.S. v. Windsor No. 12-307 (June 26, 2013) raises many issues for employers and other plan sponsors to consider about their qualified retirement plans. Section 3 of DOMA provided that the term “marriage” meant only a legal […]
Handling qualified domestic relations orders can be difficult in the best of times for retirement plan administrators. However, when a divorced participant or beneficiary seeks to change or maintain pension survivorship rights with a domestic relations order, determining the rightful beneficiary can become even more complex. Two recent federal court decisions indicate that case […]
Although defined benefit pension plan sponsors have engaged investment managers for years, it’s only recently that defined contribution plan sponsors have begun exploring this option to limit liability risk for their fiduciary role. “Because employers want to avoid litigation, which could result in personal liability for investment committee members, many plan sponsors are seeking ways […]
Defined contribution plan participants who take out plan loans are more likely saving at a lower contribution rate than most, and are not likely to repay the loan when they leave their employer. This according to a new report based on research from New York Life Retirement Plan Services’ DC data. With those factors in […]
The U.S. Department of Labor on July 22 announced temporary relief for retirement plan administrators from some participant fee disclosure deadlines approaching in August. In Field Assistance Bulletin 2013-02, DOL said it would allow a one-time “reset” of the requirement that administrators “at least annually” provide to participants detailed comparative charts of plan investment options. […]
Retirement plans’ sponsors and other fiduciaries associated with them got some reassuring news in early July when the U.S. Department of Labor stated in an advisory opinion that certain “revenue-sharing” fee payments by plan sponsors to their recordkeepers and other third-party administrators do not constitute plan assets for ERISA purposes. This means that service providers […]
The U.S. Supreme Court issued two highly anticipated rulings related to same-sex marriage on June 26 that essentially placed matters of marriage back with the states. This has a direct impact on retirement plans. First, the Court held that Section 3 of the federal Defense of Marriage Act is unconstitutional based on the equal protection […]