The U.S. District Court in the Western District of Kentucky recently ruled in favor of plan fiduciaries that adopted a qualified default investment alternative (QDIA) for an employer’s tax-qualified retirement plans.
The US Court of Appeals for the Seventh Circuit upheld a district court decision in a case reported in our August 2009 Employee Benefits Developments.
On October 14, 2010, the U.S. Department of Labor released final regulations detailing a plan administrator’s fiduciary responsibilities regarding disclosure of plan and investment-related information, including fee and expense information, to participants and beneficiaries of participant-directed individual account plans such as 401(k) plans.
In their continued efforts to combat the rising tide of employer stock-drop lawsuits, plan fiduciaries have frequently relied on a defense based on ERISA 404(c), 29 U.S.C. 1104(c).
On January 19, 2010, the US Supreme Court denied plaintiffs' petition for a writ of certiorari in the Hecker v. Deere & Co. 401(k) fee case.
Under current labor regulations last amended in 1996, sponsors of qualified retirement and health and welfare plans are required to transfer employee contributions withheld from wages as soon as those amounts can be reasonably segregated from the employer’s general assets, but not later than the 15th business day of the month following the end of the month in which the amounts would otherwise have been paid in cash.
The timing of when participant contributions become plan assets poses important liability issues for plan sponsors.
On February 12, in a decision that could affect the tide of recent ERISA “excessive fee” cases, the Seventh Circuit Court of Appeals affirmed the U.S. District Court’s dismissal of all claims in Hecker v. Deere & Company.
On October 24, 2007, the Department of Labor released final regulations implementing certain amendments to the Employee Retirement Income Security Act of 1974 (“ERISA”) that were enacted as part of the Pension Protection Act of 2006.
On October 24, 2007, the Department of Labor issued the final regulations implementing the default investment amendments made to the Employee Retirement Income Security Act of 1974 ("ERISA") by the Pension Protection Act of 2006.