Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Client Service Specialist

EPIC Retirement Plan Services
(Remote / AL / AZ / CO / CT / FL / GA / IA / IL / IN / MA / MD / ME / MI / MN / MO / NC / NE / NH / NV / NY / PA / SC / TN / TX / UT / VA / VT / WI / WY)

EPIC Retirement Plan Services logo

Principal Benefits Expert

Mineral
(Remote / Portland OR)

Experienced Retirement Plan Administrator

Karel-Gordon & Associates
(Remote / Deerfield IL)

Karel-Gordon & Associates logo

Retirement Plan Administrator

Midwest Independent TPA Firm
(Remote / Kenosha WI)

Compliance Specialist II

EPIC Retirement Plan Services
(Remote / AL / AZ / CO / CT / FL / GA / IA / IL / IN / MA / MD / ME / MI / MN / MO / NC / NE / NH / NV / NY / PA / SC / TN / TX / UT / VA / VT / WI / WY)

EPIC Retirement Plan Services logo

Documents and Operations Coordinator

Jordan & Associates Retirement Services
(Remote / Santa Rosa CA)

Jordan & Associates Retirement Services logo

Plan Document Specialist

The Ryding Company
(Remote / CA / HI / NC / NY / PA / TX / UT)

The Ryding Company logo

ESOP Administrator

Blue Ridge ESOP Associates
(Remote)

Blue Ridge ESOP Associates logo

Senior Defined Benefits Consultant

Loren D. Stark Company
(Remote)

Loren D. Stark Company logo

In-house Counsel, Legislative and Regulatory Advisor

Cheiron, Inc.
(Mc Lean VA / Charlotte NC / Chicago IL / CA / MD / NJ / NY / PA)

Cheiron, Inc. logo

Retirement Plan Administrator

The Nolan Company
(Remote)

The Nolan Company logo

Retirement Plan Administrative Specialist

Mueller Financial Services
(Elgin IL / Chicago IL / Orland Park IL)

Mueller Financial Services logo

Quality Control Specialist

Pentegra
(West Harrison NY)

Pentegra logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

News

All News > Retirement Plan Investment Costs

Get this news and more in our free daily email newsletters.
Rash of Recent Lawsuits Focus on BlackRock Indexed Target Date Options: Even Low-Cost Funds Are Being Attacked
Trucker Huss Link to more items from this source
Sept. 30, 2022

"The claims in these cases are atypical of claims usually asserted by ERISA plaintiffs because the allegations in the BlackRock cases are focused on performance alone, and not the funds' cost. Further, because the primary focus of previous plaintiffs has been on the investment options' costs, the focal point of litigation has traditionally been actively managed investment options and the claim that the options were overly priced, in addition to being poorly performing. The complaints in the BlackRock cases appear to concede that the passively managed BlackRock Funds were not overpriced."

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

A Light in the Dark: Seventh Circuit Helps Clarify New Pleading Standards for 401(k) Fee Cases
McDermott Will & Emery Link to more items from this source
Sept. 29, 2022

"[To] survive a motion to dismiss in the Seventh Circuit, the recent ruling in Albert v. Oshkosh Corp. reiterated that plaintiffs must allege both high fees and substandard services or performance in comparison to other similar 401(k) plans." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

SCOTUS, We Still Have a Serious Problem: The Continuing Inconsistency in Judicial Interpretations of ERISA
The Prudent Investment Fiduciary Rules Link to more items from this source
[Opinion]
Sept. 26, 2022

"[B]ased on the Brotherston decision and SCOTUS' denial of certiorari, [the author believes] that SCOTUS will ultimately expressly adopt the Restatement's position and rule that market indices and comparable index funds are appropriate for benchmarking purposes in 401(k) litigation.... [If] SCOTUS does adopt this position, then plan sponsors will find themselves in the same position they have found themselves in after SCOTUS' decision in Hughes v. Northwestern University -- utterly defenseless to breach of fiduciary prudence claims."

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

Circuit Courts of Appeal Uphold Dismissal of 401(k) Fee Challenges Post-Hughes
Holland & Knight Link to more items from this source
Sept. 22, 2022

"Following the U.S. Supreme Court's decision in Hughes v. Northwestern University, the U.S. Court of Appeals for the Seventh Circuit recently upheld the dismissal of a complaint challenging a 401(k) plan's purportedly excessive recordkeeping, investment management and investment advisor fees under [ERISA]. The U.S. Court of Appeals for the Sixth Circuit has also upheld the dismissal of complaints challenging 401(k) fees post-Hughes. These decisions have highlighted that plaintiffs challenging recordkeeping fees must allege how such fees were excessive in comparison to the services rendered."

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Milliman Pension Buyout Index, September 2022
Milliman Link to more items from this source
Sept. 20, 2022

"During August 2022, average accounting discount rates increased by 43 basis points (bps), while competitive annuity purchase rates increased by 58 bps. This caused the estimated competitive retiree buyout cost as a percentage of accounting liability to decrease from 98.0% to 96.9%."

Tags: Funding of DB Plans  •  Retirement Plan Investment Costs

Seventh Circuit Affirms Dismissal of Excessive Fee Case Against Oshkosh
Willis Towers Watson Link to more items from this source
Sept. 15, 2022

"This appellate decision adds momentum to the trend of courts taking a hard look at excessive fee claims at the motion to dismiss stage. The Seventh Circuit has reiterated that it is a circuit which will apply such scrutiny at the early stages (as is the case in the Sixth Circuit).... In light of substantial precedent in favor of enforcing choice of venue in plans, plan sponsors with relevant connections to the 7 states in the Sixth and Seventh Circuits may want to consider adopting such provisions if they have not already." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Excessive Fee Cases: Pendulum May Be Swinging Back in Favor of Plan Sponsors
Fox Rothschild LLP Link to more items from this source
Sept. 15, 2022

"The 7th Circuit reads Hughes as to just reject the assumption that offering an array of high- and low-cost investment options insulates fiduciaries from liability.... [P]laintiff's claim that defendant paid excessive fees based on the fees paid by similarly sized plans is without merit since the comparison does not consider the quality or type of services provided by Fidelity.... From the 6th and 7th Circuit, it appears that allegations have to compare the fees being charged with the quality and/or type of services being provided." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Seventh Circuit Given First Opportunity to Analyze the Duty of Prudence Post Hughes
Snell & Wilmer L.L.P. Link to more items from this source
Sept. 12, 2022

"Neither Hughes, the Sixth Circuit, nor the Seventh Circuit have stated what must be pled for a breach of fiduciary duty of prudence claim to survive a motion to dismiss. However, the Seventh Circuit, in essence, raised the pleading standard for excessive fees claims by holding that allegations of failing to consider one set of investment options for another will not suffice." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Seventh Circuit Provides Hope for ERISA Plan Sponsors and Fiduciaries Defending Investment Fee and Performance Litigation
Proskauer Link to more items from this source
Sept. 8, 2022

"Notwithstanding an initial set of discouraging post-Hughes opinions denying motions to dismiss ... the more recent trend has turned in a more favorable direction. In addition to the ruling in Oshkosh, the Sixth Circuit (in two separate cases) and two district courts have affirmed dismissal of similar fee and investment claims. These decisions show that in a post-Hughes environment, courts will still (and arguably must) dismiss complaints that fail to strictly adhere to the applicable pleading standards." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

Trying to Make Sense of ERISA Pleading Law After the Seventh Circuit's Oshkosh Decision
Euclid Specialty Managers Link to more items from this source
Sept. 8, 2022

"[T]he Seventh Circuit in Oshkosh has issued an opinion that limits the ability of plaintiff law firms to create a liability trap for plan fiduciaries who utilize revenue sharing and active funds in their investment lineup.... The key takeaway from Oshkosh is that we now have both the Seventh and Sixth Circuit's interpreting the Supreme Court's decision in Hughes v. Northwestern narrowly." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Two Losses for Pension Plan Participants Challenging Investment Fees
Kantor & Kantor LLC Link to more items from this source
Sept. 7, 2022

"401(k) plan fiduciaries defeated claims by participants that they breached their duties under ERISA with respect to investment fees.... At a minimum, [these two cases provide] vivid illustrations of the difficulties of bringing successful suits challenging the fees and investment returns for ERISA pension plans." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022); Rozo v. Principal Life Ins. Co., No. 21-2026 (8th Cir. Sep. 2, 2022)]

Tags: 401(k) Plans  •  Fiduciary Duties  •  Retirement Plan Investment Costs

Eighth Circuit: Principal Life Insurance Company Did Not Breach ERISA Fiduciary Duties with Its Stable Value Contract for 401(k) Plans
Roberts Disability Law Link to more items from this source
Sept. 6, 2022

"Principal is ... compensated for any positive spread between what it promises to credit participants and what its investments actually yield. The higher the 'deducts' to the Guaranteed Interest Rate (GIR), the lower the rate paid to participants. The court found that this tension does not inevitably result in a type of conflict that establishes a breach of the duty of loyalty." [Rozo v. Principal Life Ins. Co., No. 21-2026 (8th Cir. Sep. 2, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

District Court Rejects Cross-Selling Claims in Mixed ERISA Ruling
planadviser Link to more items from this source
Sept. 2, 2022

"Much of the ruling sides with plaintiffs and permits the case to move to discovery, but the defendants successfully defeat claims related to cross-selling and data-sharing among providers." [Berkelhammer v. ADP TotalSource Group Inc., No. 20-5696 (D.N.J. Aug. 23, 2022; unpub.)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

Low-Cost Index Funds in the Crosshairs of New 401(k) Lawsuits
Holland & Knight Link to more items from this source
Sept. 1, 2022

"Each of the 401(k) plans involved in the lawsuits offered the target-date BlackRock LifePath Index Funds, which received the highest rating in the Morningstar 2022 Target-Date Landscape report. Despite this rating and the fact that TDFs are not meant to have the best performance of a 401(k) plan's investment options, the plaintiffs argue that plan fiduciaries failed to consider the BlackRock TDFs' return potential and instead only 'chased the low fees' charged by the funds."

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Seventh Circuit Upholds Dismissal of ERISA Claims Alleging Mismanagement of Retirement Plan by Oshkosh Corporation
Roberts Disability Law Link to more items from this source
Aug. 31, 2022

"[T]he court found that Albert's comparison of recordkeeping fees paid by nine random plans from around the country is not enough to support the excessive recordkeeping fees claim. There are no allegations as to the quality or type of recordkeeping services the comparator plans provided." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Sixth Circuit Issues Mixed Rulings in Two ERISA Excessive Fee Cases
Mercer Link to more items from this source
Aug. 24, 2022

"In both cases, the 6th Circuit upheld the lower court's dismissal of claims challenging the prudence of actively managed funds, as well as allegations of excessive investment and administrative fees. But in one case, the court revived allegations that plan fiduciaries imprudently offered retail share class mutual funds instead of cheaper -- but otherwise identical -- institutional share classes." [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022); Forman v. TriHealth, Inc., No. 21-3977 (6th Cir. Jul. 13, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

Plaintiffs Say Plan Fiduciaries Committed Breaches at Swiss Re
PLANSPONSOR; free registration may be required Link to more items from this source
Aug. 23, 2022

"[T]he plaintiffs suggest their retirement plan's fiduciaries failed to fully disclose the expenses and risk of the plan's investment options to participants and beneficiaries. The lawsuit also alleges that plan fiduciaries allowed unreasonable expenses to be charged to participants and selected, retained or otherwise ratified high-cost and poorly performing investments." [Harris v. Swiss Re American Holding Corp., No. 22-7059 (S.D.N.Y. complaint filed Aug. 18, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Excessive Fee Suit Treads Familiar, New Ground(s)
American Retirement Association [ARA] Link to more items from this source
Aug. 22, 2022

"The fiduciaries of yet another multi-billion dollar 401(k) have been sued for an alleged breach of its fiduciary duty—ostensibly for causing the plan to pay “unreasonable and excessive fees for recordkeeping and other administrative services”—including a new type of allegation." [McDonald v. Laboratory Corp. of Am. Holdings, No. 22-0680 (M.D. N.C. complaint filed Aug. 18, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Sixth Circuit Provides Tutorial on Context-Specific Pleading in ERISA Fee-and-Expense Cases After Northwestern v. Hughes
Greenberg Traurig Link to more items from this source
Aug. 17, 2022

"These decisions effectively rebut the arguments of fiduciary imprudence asserted in most excessive fee lawsuits, where plaintiffs ask the court to infer fiduciary malpractice based on circumstantial evidence of what participants consider an undesirable outcome. In so doing, the Sixth Circuit's analysis is instructive on Hughes."

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

Managed Account Fees Challenged in Latest ERISA Lawsuit
PLANSPONSOR; free registration may be required Link to more items from this source
Aug. 17, 2022

"The proposed class action lawsuit suggests the Dover Corporation permitted the payment of excessive recordkeeping and managed account fees within the defined contribution retirement plan it offers to its employers. The suit also suggests the plan fiduciaries' retention of the managed account provider, Financial Engines, constituted a violation of ERISA." [Gosse v. Dover Corp., No. 22-4254 (N.D. Ill complaint filed Aug. 11, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

More TDF Underperformance ERISA Lawsuits Filed
planadviser Link to more items from this source
Aug. 16, 2022

"The lawsuits all include nearly identical ERISA fiduciary breach allegations against the defendants, but these allegations stand in sharp contrast to the broader landscape of ERISA litigation. In most cases filed previously, the defendants are accused of permitting participants to pay excessive fees and of failing to utilize their bargaining power to secure cheaper share classes and lower recordkeeping expenses. The new suits, on the other hand, focus on alleged underperformance of the plans' target-date funds."

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

ERISA Lawsuit Against New York Life Insurance Allowed to Proceed
Pensions & Investments Link to more items from this source
Aug. 12, 2022

"[T]he plaintiffs alleged that fiduciaries violated ERISA by retaining nine MainStay funds that were poor performers compared with benchmarks and cost more than comparable investments in the marketplace. These funds are proprietary New York Life investments. [The judge] rejected defendants' motion to dismiss for eight of the nine funds, saying the plaintiffs' allegations 'support a reasonable inference' that the fiduciaries used a flawed process to retain the funds." [Krohnengold v. New York Life Ins. Co., No. 21-1778 (S.D.N.Y. Aug. 10, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

Guidelines for 401(k) Fiduciaries on Mutual Fund Selection
Golan Christie Taglia Link to more items from this source
Aug. 9, 2022

"Although the courts are divided, there are some guidelines that plan fiduciaries need to consider when reviewing their plan's mix of mutual funds offered for participant investment: [1] Include index funds in your plan's investment choices.... [2] Be careful in selecting and monitoring actively managed funds.... [3] Plan fiduciaries should always select the lowest cost class of a selected mutual fund that is available."

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs  •  Retirement Plan Investments

401(k) Investment Lineup Tweaks Reveal Focus on Fees
Pensions & Investments Link to more items from this source
Aug. 1, 2022

"More than 100 U.S. corporate 401(k) plans in 2021 made changes in their investment options lineups ... Those plans had assets totaling $209 billion and added 185 investment options from 54 managers in the year ended Dec. 31. Plans in that same universe removed 178 investment options from 52 managers during that same period."

Tags: Retirement Plan Investment Costs

Sixth Circuit: Retail vs. Institutional Share Class Claim Cannot Be Dismissed on Motion
October Three Consulting Link to more items from this source
July 29, 2022

"It appears, in the Sixth Circuit at least, that plan fiduciaries will be open to litigation, which they will not be able to dispense with on a motion to dismiss if they select (for the plan's fund menu) retail share classes, where institutional share classes would be available to them in that plan." [Forman v. TriHealth, Inc., No. 21-3977 (6th Cir. Jul. 13, 2022)]

Tags: Fiduciary Duties  •  Retirement Plan Investment Costs

© 2022 BenefitsLink.com, Inc.