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Now that the IRS has incorporated 403(b) plans into its Employee Plans Compliance Resolution System, it is providing some plan sponsors with compliance relief, and is expanding upon some online tools it provides to help plan sponsors identify the steps they can take to help maintain their 403(b) plans. In January, the IRS issued Revenue […]
One result of the new fee disclosures requirements and retirement plan sponsors’ new duty to ensure reasonable service fees has been increased review of many plans’ provider costs. Through requests for proposals, comparative benchmarking and renewed scrutiny of current providers, plan committees and sponsors are endeavoring to learn if they are paying too much for […]
Many employers that sponsor 401(k) retirement plans make mistakes in the way they report elective deferrals on Form W-2, the federal tax agency’s Wage and Tax Statement sent to employees. IRS on Feb. 13 said on its website that its Employee Plans Compliance Unit sampled filings from employers that provided Forms W-2 and found 75 […]
Current and former 401(k) plan participants have sued Fidelity Investments on behalf of thousands of other plan participants and retirees to recoup account losses they say resulted from “self-dealing” by the huge asset manager. The case is worth plan sponsors’ attention because it closely resembles a widely watched 2012 ruling against Fidelity, Tussey v. ABB […]
Shortly after the American Taxpayer Relief Act of 2012 eased the conversion of defined contribution plan balances into after-tax Roth accounts, many employers indicated they were very or somewhat likely to add the in-plan Roth 401(k) conversion options the act created as a new federal revenue source. Global human resources consultant Aon Hewitt conducted a […]
Plan sponsors may take heart at a district court’s ruling supporting the interpretation of plan language by one of their own — but a partial dissent could spell more claims for equitable relief. The 6th U.S. Circuit Court of Appeals reversed a ruling for the plaintiff in a surviving-spousal benefits suit and supported the defined […]
With lump-sum retirement distributions gaining favor among employers with defined benefit plans, sponsors should note a decision from a federal district court that supported the right of lump-sum payout recipients to receive a cost-of-living adjustment that is actuarially equivalent to the COLA paid to annuitants. In Pikas v. Williams Cos., District Judge Gregory Frizzell granted […]
Court Fails to Find ERISA Breach Plan sponsors, especially those in the financial services industry, have some assurance about their right to invest in affiliated mutual funds and other assets for their retirement plans, based on a recent ruling by an appeals court. The 4th U.S. Circuit Court of Appeals on Jan. 14 upheld the […]
A recent U.S. district court decision is the latest ruling over plan fees and may give a legal foothold to participants seeking restitution for investment decisions they deem imprudent. Judge Susan Richard Nelson of the U.S. District Court for the District of Minnesota ruled against Ameriprise Financial Inc. in a case concerning allegations that the […]
To expedite distribution of retirement assets from companies in Chapter 7 bankruptcy proceedings, the U.S. Department of Labor wants to allow bankruptcy trustees to use its Abandoned Plan Program. This program establishes a process to terminate abandoned plans so that plan participants and beneficiaries gain quicker access to their benefits; currently, however, bankruptcy trustees do […]