Understanding Employee Benefits

Tibble and Class Action Plaintiffs Win Round Two versus Edison International and Its 401(k) Investment Committees

By

In past articles in this Blog I reported on decisions of the 9th Circuit Court of Appeals and ultimately the U.S. Supreme Court dealing with a class action for breach of fiduciary duty for selecting retail mutual funds in 1999 for which lower costs institutional funds were available. http://benefitsnotes.com/2013/04/ninth-circuit-decides-selection-of-retail-mutual-funds-was-a-breach-of-fiduciary-duty/ ;... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans

No Additional Delay on Effective Date of New Fiduciary Standards – DOL

By

This week, new U.S. Department of Labor Secretary Acosta announced that the final fiduciary regulations would go into effect on June 9, 2017. The Department also issued two pieces of guidance with regard to the regulations also referred to as the “Conflicted Advice Rules”.  The guidance consists of a set... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans

Embezzlement of 401(k) Deferrals by COO of Architecture Firm is (Doubly) Costly

By

On March 22, 2017, the U.S. Court of Appeals for the Second Circuit ruled against Christine Bodouva that her restoration of funds to her Company’s 401(k) Plan should be offset against the District Court’s order for forfeiture in her criminal trial. U.S. v Christine Bodouva, Case 16-3937, 2nd Cir. 3/22/17.... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Payroll, Retirement Plans

Owner/Trustee of 401(k) Plan Accused of Having Eyes Wide Shut on Fiduciary Duties

By

Last June I blogged about the trend of participant fee class actions moving down to smaller 401(k) Plans. http://benefitsnotes.com/2016/06/inside-trustees-for-small-minnesota-401k-plan-face-class-action-over-excessive-fees/ Occasionally, class actions are brought based on other breaches of fiduciary duties, particularly those involving significant drops in value of concentrated Plan investments such as employer stock referred to as “Stock... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans, Uncategorized

IRS and Treasury Department Seek Input on How Plan Sponsors Can Avoid Plan Document Problems

By

On September 16, 2016, the IRS and the Department of the Treasury requested public comment on ways the IRS and Treasury “can improve compliance…by making it easier for plan sponsors to satisfy requirements for qualified plan documents” in the wake of the determination letter program changes (Announcement 2016-32). In June,... Read More

Topics: Fiduciary Guidance, Retirement Plans

Inside Trustees for Small Minnesota 401(k) Plan Face Class Action Over Excessive Fees

By

A Minneapolis law firm recently filed a class action complaint against Lamettry’s Collision, Inc. and the Trustees of its 401(k) Plan, CFO Stephen Daniel and President Joan Lamettry for various breaches of fiduciary duty with respect to fees charged to Plan participants’ accounts in the Company’s 401(k) Plan. Specific allegations... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans

Federal Court Determines that Employer Use of Employee Health Insurance Premium Payments Breach of ERISA Fiduciary Duties

By

On November 9, 2015, Minnesota Federal District Judge Susan Richard Nelson ruled that the president and CEO of Faribault Woolen Mills Company breached his fiduciary duties under ERISA by diverting Employee health insurance premiums toward corporate and personal use. The lawsuit was brought by the U.S. Department of Labor. Facts:... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Health Plan, Payroll, Welfare Plans