Recently the Bell vs. ATH Holding Company, LLC (a subsidiary of Anthem, Inc.) lawsuit settled. This is frequently referred to as the “Anthem Settlement” (the “Settlement”). The Settlement received quite a bit of attention from both the industry and mainstream press for a number of reasons, not the least of which include the size of the 401(k) plan ($5.1 billion), the size of the monetary … Continue reading Anthem Settlement Awards Participants More than $23M

Synopsis Anthem plan participants alleged that plan fiduciaries did not perform due diligence on funds being used in the plan Parties reached a settlement that includes more than $23 million awarded to participants in addition to certain plan enhancements including: requirement to provide a participant communication on money market funds; conduct a recordkeeper RFP within 18 months of the settlement; and engage with an independent … Continue reading Anthem Settlement

ABB recently announced the settlement of a lawsuit involving its 401(k) Plan. This settlement is another victory for the law firm of Schlichter, Bogard & Denton in St. Louis. Earlier this year, it obtained a $10 million settlement in a suit brought against Duke University. Filed in 2013, this suit has now dragged on for almost 13 years. It was one of the first class … Continue reading ABB Settles for $55 Million

Wells Fargo sold off a number of business units in an effort to better focus on its core banking business. In the latest deal, Principal Financial Group agreed to purchase Wells Fargo’s retirement and trust services business for $1.2 billion. This is a substantial acquisition. This business represents $827 billion in retirement plan assets with 7.5 million participants. This transaction will increase Principal’s footprint in … Continue reading Wells Fargo – Principal Agrees to Buy Retirement Business

A number of bills are moving rapidly through the House and the Senate that would (if passed and signed) enhance the retirement plans of many Americans.  While these bills continue to morph, below is a general description of provisions as of early April 2019. Retirement Security & Savings Act Senators Rob Portman (R-Ohio) and Ben Cardin (D-Maryland) introduced the Retirement Security & Savings Act in … Continue reading Washington Update

National Retirement Security Week (NRSW) is a week in October, recognized by Congress to help raise awareness of the importance of taking personal responsibility for saving for retirement.  Plan sponsors can take advantage of many tools to create a focused campaign emphasizing the benefits of saving for retirement by investing in an employer-sponsored plan.  Whether a plan sponsor wants to increase participation, attract certain demographic … Continue reading National Retirement Security Week

Since 2016, more than 20 lawsuits have been filed against fiduciaries of university retirement plans. The defendants are among the largest and most prestigious schools in the country, as they present very visible targets. Many of these suits were filed by the same law firm, Schlichter, Bogard & Denton of St. Louis, one of the leading plaintiffs’ firms in ERISA litigation. Plaintiffs have not fared … Continue reading Ongoing Litigation Against Colleges and Universities – Duke Settles But It’s Hardly a Windfall for Participants

The Pension Benefit Guaranty Corporation (the PBGC) is a government insurance program that guarantees all private defined benefit pensions. There is no comparable insurance for defined contribution plans. The PBGC pays benefits to almost a million participants covered by 4,800 failed pension plans and is responsible for future payments to another half a million individuals. The PBGC faces an uncertain financial future and its challenges … Continue reading The PBGC Assumes Responsibility for Sears Pension Plans

This past November, the IRS issued proposed regulations to effectuate changes made for hardship withdrawals in the Bipartisan Budget Act of 2018. Comments were due by Jan. 14, 2019. Although the statutory changes are effective beginning in 2019, the proposed regulations do not require any changes in how hardships are administered until 2020. Plan documents must be amended to reflect changes to the safe harbor … Continue reading Hardship Withdrawals – The Internal Revenue Service Issues Proposed Regulation Reflecting Statutory Changes

In August, the Internal Revenue Service issued a private letter ruling (PLR) clarifying that employer contributions to retirement plans may be tied to student loan payments. Since the great recession of 2008-09, student loan debt in the U.S. has mushroomed. It is estimated that Americans now hold approximately $1.5 trillion in student loans. As a result, many employers are looking for ways to assist their … Continue reading IRS Guidance Indicates Employer Contributions to Retirement Plans may be Linked to Student Loan Payments