"A second federal court in Texas on Friday put a hold on the [DOL's] Retirement Security Rule, expanding beyond an earlier stay to all of the rule's exemptions and saying that plaintiffs are 'virtually certain' to succeed in their claims against the regulator.... Judge Reed C. O'Connor ... sided in part with the plaintiffs ... ordering a stay on the so-called fiduciary rule with the argument that it did not need further court review; but denying a preliminary injunction, which would put a hold on a rule until the court decides on its merits."
[ACLI v. DOL, No. 24-0482 (N.D. Tex. Jul. 26, 2024)]  MORE >>

"[T]he Stay is not limited to the plaintiffs in the case or the jurisdiction of the Eastern District of Texas but, rather, applies nationwide....[T]he Stay does not impact the effective date of ... amendments to [PTE 2020-02] (which are scheduled to become effective September 23, 2024) ... [U]ntil further court action, the 2024 Fiduciary Rule and amendments to [PTE 84-24] will not become effective and the 1975 rule (the so called 'five part test') remains in effect."
[FACC. v. DOL, No. 24-0163 (E.D. Tex. Jul. 25, 2024)]  MORE >>

"Generative AI, such as ChatGPT, can provide a broad understanding of investing, helping clients feel more comfortable discussing their options during meetings with their advisors. However, on its own, generative AI is not a credible source of financial advice or information. AI chatbots are not capable of replicating the quality of service and personalization advisors offer, making it more of a supplementary tool than a threat."  MORE >>

"Making 401(k) plans more automated could solve many problems that burden the current system, help more people get enrolled, and help more people save for their future. Let’s dig into what making 401(k) plans automatic means and why that inflection point could come in 2025."  MORE >>

"Nearly six years after the first actuarial equivalence lawsuit was filed in 2018, this wave of litigation shows no signs of stopping. More than 30 lawsuits have been filed against large pension plans, including at least 15 cases filed since 2022. This year, courts have issued a flurry of opinions, but no court has issued a favorable judgment on the merits for any of the respective pension plan participant plaintiffs."  MORE >>

"[An] employer can choose what a year of service means by using different counting methods. In most cases, a year does not mean twelve months and many of the counting methods are a something-for-nothing giveaway!"  MORE >>

"Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) is expanding the investigation into the Biden-Harris administration's attempt to leverage pension assets to support Big Labor. Today, Chairwoman Foxx sent letters to [IRS] Commissioner Daniel Wefel and California Public Employees' Retirement System (CalPERS) President and Vice Chair of Investment Theresa Taylor demanding answers regarding CalPERS' commitments to divert pension holdings for the benefit of organized labor."  MORE >>

"[PBGC] has approved the application submitted ... by the New England Teamsters Pension Plan ... [which is] based in Burlington, Massachusetts, [and] covers 72,141 participants in the transportation industry. [The plan] will receive approximately $5.7 billion in special financial assistance ... [It] was projected to become insolvent and run out of money in 2028."  MORE >>

"Nowhere in ERISA does it mention any duty to provide investment alternatives that plan participants want. Annuity advocates respond with 'that's horrible' and make unfounded claims about moral and ethical duties to offer their imprudent investment products.... As the analysis below shows, even if the 65 year-old purchaser in this example beat the odds and lived to be 100, the owner still would not break even. If mortality risk is factored in, the annuity owner would fall woefully short of breaking even, over $30,000 short!"  MORE >>

"Like the previous issue brief, the 2024 brief ... [implies] that, for the most part, the shortfall since 1983 resulted primarily from economic factors, including the growth of taxable payroll falling below expectations and lower than expected portfolio returns.... [A] much larger percentage of the system's funded status deterioration since 1983 has been attributable to the assumption implied in the current valuation process that system cost will equal system income for years following the end of the 75-year projection period."  MORE >>

"[T]hese documents will confirm whether the alternative investments STRS Ohio has made are plagued with ... industry abuses ... as well as whether the pension may be able to recover any funds pilfered -- funds that could be used to pay benefits promised. Finally, public scrutiny of these heretofore 'Top Secret' documents will reveal whether the 'Special Audit of STRS' conducted by Ohio Auditor Keith Faber in 2021 was thorough."
[Siedle v. State Teachers Retirement System of Ohio, No. 22AP-375 (10th App. Ohio Jul. 26, 2024)]  MORE >>

"To ensure clients are protected, lawyers using generative artificial intelligence tools must fully consider their applicable ethical obligations, including their duties to provide competent legal representation, to protect client information, to communicate with clients, to supervise their employees and agents, to advance only meritorious claims and contentions, to ensure candor toward the tribunal, and to charge reasonable fees."  MORE >>