"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)]  MORE >>

"It's not the first--or only--time that this type litigation has been 'paused' for arbitration.... But what does seem unique--at least in this type of litigation--is the application/adoption of the arbitration clause by the plan, applied to those bringing suit on behalf of the plan. That said, the likelihood of more such clauses appearing would seem to be ripe for increase[.]" [Holmes v. Baptist Health South Florida Inc., No. 21-22986 (S.D. Fla Jan. 20, 2022)]  MORE >>

"The Second Circuit determined that the plain language of the Pension Plan unambiguously states that Cannady's benefits are to be calculated based on the [annuity starting date].... The Plan makes no reference to the claim filing date with respect to the relevant date for when determining which benefits are impacted by [the amendment]." [Cannady v. Bd. of Trustees of the Boilermaker-Blacksmith Nationl Pension Trust, No. 20-3141 (2d Cir. Jan. 18, 2022)]  MORE >>

"The combination of Automatic Contribution Plan/Arrangement (ACPA) provisions and an enhanced Saver's Credit program are projected to have a material impact on reducing retirement deficits when analyzed for households simulated to have a retirement deficit.... The addition of auto portability significantly improves retirement savings shortfalls for all races studied, with families headed by workers falling in the 'other' category impacted the least."  MORE >>

"Documentation, including a committee charter that provides a road map for initial and ongoing fiduciary compliance is crucial to avoidance of fiduciary breach issues.... Plan fiduciaries should carefully memorialize their active engagement to ensure service provider fees are reasonable.... Retirement plan decision makers should carefully review and understand whether investments outside the current plan investment lineup provide similar returns with lower management fees."  MORE >>

"In light of recent greater than expected returns on equities and spending restrictions imposed by the pandemic, you may find that your current year spending budget developed using the Actuarial Financial Planner is greater than annual amounts you have been recently spending. If that is the case, you may wish to consider consciously increasing your spending for the near future rather than simply watching your Rainy-Day Fund accumulate."  MORE >>

"Under SAS 136, plan sponsors must acknowledge their responsibility for the plan's administration in the audit engagement letter ... [and] provide written representations at the end of the audit regarding their responsibilities.... Tips for working with benefits plan auditors[:] ... [1] Take a hard look at your auditors.... [2] Invest time and effort to prepare.... [3] Discuss the audit plan.... [4] Be available and involved during your audit.... [5] Seek actionable feedback from the audit report.... [6] Keep your auditors informed all year."  MORE >>