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Opinion on John Goodman's Critique of Michael Moore's Documentary on Health Care Reform

Excerpt: Bad economics is [John] Goodman's basic charge against 'Sicko.' This charge prompted me, an economist, to see the documentary. My conclusion? Moore is far less guilty of flawed economics and disregard of relevant facts than is Goodman. Moore is also straightforward about his values and ideology, whereas Goodman masks his as scientific economics. This impels me to defend my profession by exposing the falsity of his claims, and some of the salient facts that he ignores.  MORE >>

Why John Goodman Doesn't Like Health Insurance Deductibles

"Most people who defend deductibles and co-payments argue that these devices give patients incentives to make better decisions. But, if that is the goal the means to achieve it are too crude and too weak. In the case of the deductible, the incentive to economize vanishes once the deductible is exceeded. In the case of coinsurance, the incentives are incredibly weak. If I have a 10% copayment, my incentive is to consume care until it's worth 10 cents on the dollar to me. At 20%, my incentive is to consume care until it is worth 20 cents on the dollar. Can't we do better than that?"

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Why John Goodman Likes Jason Furman

"In a 2008 paper, the new Chairman of the Council of Economic Advisors says that the ideal way to encourage private insurance is by means of a refundable tax credit. The explanation reads like it could have been written by John McCain or by yours truly. If only the president had listened three years ago."

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Uwe Reinhardt: A Response to John Goodman about the Republican Vision for Health Reform

"There actually is a current Republican vision. It has been expressed through the House budget resolution. I agree with Goodman, though, that in the past Republicans, John Goodman included, did offer visions on U.S. health care that differ sharply from the one expressed by the House and are worth considering."  MORE >>

John Goodman: Why I Am More Egalitarian Than Most Liberals on Health Care

"One thing that adds to so much confusion is that people on the left have a huge investment in seeing themselves as more altruistic and more caring than everybody else. Paul Krugman, for example, refers to the Republican Party as the party of Scrooge and sees most elections as Dickensian morality plays -- even though research shows that right-of-center folks are actually more generous than folks on the left, on the average. Today, [I, John Goodman,] ask you to put aside such foolish thoughts and seriously consider the titular issue of this post."

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Video and Text: Steve Forbes Interview with Olivia Mitchell, Pension and Retirement Expert

Certainly the pension structure in the U.S. is in grave trouble. State, local and municipal pension plans are underfunded by about $3 trillion ? probably about 65% funded, if you do the math their way. Probably about 30% funded, if you do the math, I think, the more accurate way.  MORE >>

Towers Watson?Forbes Insights 2010 Pension Risk Survey

Excerpt: There is no sign that the decline in the sponsorship of active defined benefit (DB) plans has reversed. Neither is the extinction of DB plans imminent. Instead, the survey shows that most sponsors of active plans will continue to provide retirement benefits, although many will cut back on benefits, and some are indeed seeking to close or freeze. The task for pension plan sponsors, according to respondents, is to take action to manage risk and reduce liabilities.

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John Hancock, Not 401(k) Plan, Receives Fruit of Foreign Tax Credits in Pooled Investments

"Plaintiffs' theory of their action was that John Hancock breached its duty of loyalty by receiving the foreign tax credits and not passing them on to the plans in any way, resulting in a reduction in the value of the plans' assets.... Adopting the logic of the lower court, with a notable exception on standing, the Eleventh Circuit affirmed the lower court's holding that John Hancock was not acting as an ERISA fiduciary with regard to the conduct at issue." [Romano v. John Hancock Life Ins. Co. (USA), No. 22-12366 (11th Cir. Oct. 30, 2024)]  MORE >>

Class Certified in Lawsuit by 401(k) Plan Trustees Against John Hancock

"The plaintiffs allege John Hancock breached [ERISA] fiduciary duty of loyalty by receiving and retaining foreign tax credits (FTCs) for the international investment options, resulting in an alleged reduction in the value of the plan's assets. The plaintiffs also allege that John Hancock caused the plan to enter into an ERISA-prohibited transaction by not crediting it with the value of the FTCs." [Romano v. John Hancock Life Ins. Co., No. 19-21147 (S.D. Fla. Jan. 14, 2022)]

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Self-Dealing ERISA Challenge Targets John Hancock

"The proposed class action suggests that John Hancock breached its fiduciary duties 'by applying an imprudent and inappropriate preference for John Hancock products within the plan, despite their poor performance, high costs and lack of traction among fiduciaries of similarly-sized plans.' In addition, the self-dealing lawsuit suggests the firm failed to monitor or control the plan's administrative expenses, allegedly costing the plan millions of dollars in excessive administrative fees over the course of the class period." [Baker v. John Hancock Life Ins. Co., No. 20-10397 (D. Mass. complaint filed Feb. 27, 2020)]  MORE >>

John Hancock Expands Further Into Retirement Planning with Purchase of New York Life Division

"New York Life handles pensions and retirement plans for labor unions and mid-size to large companies, such as the office supply chain Staples Inc. Until now, John Hancock has provided retirement planning services primarily to start-ups and smaller business. The acquisition will bring $135 billion in assets and 55,000 retirement plans under John Hancock's administration. As part of the purchase, John Hancock expects to offer positions to all 450 New York Life employees in Westwood who handle the retirement segment[.]"  MORE >>

Text of Solicitor General's Amicus Brief in Support of Plaintiffs Alleging Fiduciary Breach by John Hancock Life Insurance Company (PDF)

"The district court's decision ignores the important fact that John Hancock not only retained the right to substitute or delete the funds available to the Plans, but regularly monitored the Plans and could, and on occasion did, unilaterally substitute fund and share classes at its discretion. Likewise, the decision ignores plausible allegations that, despite this authority, John Hancock failed to exercise this authority to eliminate funds when it would have been prudent to do so." [Santomenno v. John Hancock Life Insurance Company, No. 13-3467 (3d Cir. filed Jan. 21, 2014; corrected brief filed May 28, 2014)]  MORE >>

In Memoriam: John Mark Vine

"John Mark Vine of Washington, DC, passed away on Wednesday, December 1, 2021.... He came to Washington to clerk for Judge Arnold Raum on the U.S. Tax Court and spent the remainder of his legal career at Covington & Burling, where he was instrumental in shaping important aspects of [ERISA] following its passage in 1974.... In addition to his groundbreaking work in the areas of employee benefits and executive compensation, John was a model and teacher for generations of younger lawyers."

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John Deere Workers Successfully Resist Demand for Pension Freeze of New Hires

"About 10,000 striking John Deere Co. workers are returning to work under a new contract that, among other provisions, removes language from an initial tentative bargaining agreement that would have prevented new employees from joining the company's pension plan."

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John Hancock Settles ERISA Lawsuit for $14 Million

"The settlement also provides an agreement that John Hancock will hire a third-party investment consultant to provide ongoing monitoring and review of the investment options for at least five years from the settlement effective date, will develop an investment policy statement for the plan, and hire a consultant to assist with issuing a request for information for record-keeping services."  MORE >>

Settlement in Johns Hopkins 403(b) Plan Lawsuit Includes Recordkeeper Bid

"The $14 million settlement agreement also requires the University to retain an independent consultant to assist plan fiduciaries in reviewing the plan’s existing investment structure." [Kelly v. The Johns Hopkins Univ., No. 16-2835 (D. Md. Sept. 28, 2017; settlement filed Aug. 6, 2019)]  MORE >>

Vanguard Announces the Passing of Founder John C. Bogle

"John Clifton Bogle, founder of The Vanguard Group ... died [January 16] in Bryn Mawr, Pennsylvania. He was 89.... He introduced the first index mutual fund for investors and, in the face of skeptics, stood behind the concept until it gained widespread acceptance; and he drove down costs across the mutual fund industry by ceaselessly campaigning in the interests of investors."  MORE >>

Johns Hopkins Employees Advance Retirement Plan Fee Suit

"A federal judge Sept. 28 refused to dismiss key portions of the lawsuit, including claims that the school violated [ERISA] by offering actively managed funds in its retirement plan and using multiple record-keepers. However, the judge dismissed claims that Johns Hopkins imprudently offered higher-cost share classes when cheaper classes of the same funds were available. The judge also dismissed the novel claim that the school violated ERISA by offering too many investment options in its retirement plan." [Kelly v. The Johns Hopkins Univ., No. 16-2835 (D. Md. Sept. 28, 2017]

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John Hancock Dodges ERISA Class Action

"The cases are holding with few exceptions that the functional fiduciary test under 3(21)(A)(i) must show that the fiduciary actually exercised their discretion. In decisions in favor of AUL and John Hancock, the plaintiffs were unable to show that. In decisions against Transamerica, MassMutual, and ING, the plaintiffs were able to either show the exercise of discretion or that it was a issue of fact for trial.... The open question from these cases is whether 3(21)(A)(iii) requires the actor to actually exercise their discretion or not, i.e. it's a fiduciary breach to be both malfeasant and nonfeasant."

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Vanguard's John Bogle Makes His Case for Improving 401(k) Plans

"At 85, John Bogle remains a leading, and fiercely positive, advocate for the long-term future of 401k plans. Last Tuesday he testified before -- or more accurately, unloaded on -- the Senate Finance Committee at its hearing on retirement savings plans.... He detailed the flaws in the current regulations governing retirement plans. And he presented pointed criticism of the mutual fund industry for putting profits above fiduciary duty. His testimony is a 'must-read' for anyone engaged in the debate for retirement plan reform."  MORE >>