With 401(k) litigation increasing, plan advisors and plan sponsors need to know the latest laws as well as strategies attorneys are using to sue employers and advisors. BenefitsPRO's legal coverage includes news, analysis and updates on cases.
The House Education and the Workforce Committee voted Wednesday to advance a resolution to overturn the Department of Labor's new fiduciary rule, which is also facing two lawsuits filed in federal courts.
The Republican-led state attorneys general oppose a Department of Labor rule that permits environment, social and governance factors to be considered when when selecting investments for clients.
The Securities Industry and Financial Markets Association (SIFMA) & Financial Services Institute (FSI) argue that the rule — while intended to strengthen investor protections — would actually limit their access to retirement products.
The ERISA Industry Committee wants the DOL to scale down what it calls "excessive amounts" of participant information for its SECURE 2.0-mandated Retirement Savings Lost and Found database to be launched in 2024.
A former Wells Fargo employee filed a lawsuit last week, alleging that the bank mismanaged its 401(k) plan by using assets forfeited by former workers for its own financial benefit instead of plan participants.
Retirees claim that AT&T selected a "risky" insurer, Athene Annuity and Life, to conduct the $8.05 billion pension risk transfer of plan assets, but the company claims it is not responsible for a decision made by its independent fiduciary.
The new fiduciary rule, which mainly applies to 401(k) plans, expands the definition of fiduciary advice to HSA providers or employers, who should avoid recommending how account holders should invest their funds.
The wealth management firm breached its fiduciary duties because of the "systematic efforts on TIAA's part to drive members from their ERISA plans and into TIAA-sponsored offerings," ruled a New York District Court Judge.