Prior to 2014, many federal courts applied a “presumption of prudence" standard when evaluating a fiduciary's decision to offer employer stock as an investment option under their company’s retirement plan. However, Fifth Third Bancorp v. Dudenhoeffer, drastically changed this, as the U.S. Supreme Continue Reading
Employee Relations Law Journal | Plan Fee Litigation: The Tide May Be Turning in Favor of Plan Fiduciaries
For many years, plan sponsors and other fiduciaries have been caught in a whirlwind of litigation primarily related to 401(k) and 403(b) plan fees. Many of these cases have settled resulting in plan fiduciaries having to pay many millions of dollars. Other cases have resulted in adverse decisions Continue Reading
Employee Relations Law Journal | Qualified Plan Mistakes Happen: What Plan Sponsors Do Next Is What Matters Most
The Internal Revenue Service (“IRS”) is very much aware that plan sponsors of tax-qualified retirement plans (such as 401(k) plans) make mistakes in plan administration. The types of mistakes are varied and numerous. For example, a plan sponsor may neglect to enroll an eligible employee in their Continue Reading