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Schlichter, Pentegra Settle MEP Fiduciary Breach Suit for $48.5 Million

"Additionally, the settlement calls for: the phased removal of certain Board members[iii], and A competitive bidding process[iv] for the Plan's recordkeeping and administrative services overseen by an independent fiduciary." [(Khan v. Bd. of Directors of Pentegra Defined Contribution Plan, No. 20-7561 (SDNY order and settlement agreement Jul. 2, 2025)]

Misconceptions About Fiduciary Roles of the Plan Administrator and Principal Fiduciary in a Retirement Plan (PDF)

"There is a new breed of service provider arising in the marketplace that positions itself as an added layer between the employer and other service providers. Contrast that business model with that of a discretionary trustee, which chooses the investments rather than choosing a person to choose the investments. Or contrast it with the business model of a 'working' 3(16) administrator which not only accepts the fiduciary role but actually performs the administrative functions, rather than hiring a TPA. Both business models can be extremely helpful to an employer and both are valid."

The Retirement System Diaries, Chapter 1: The So-Called Retirement Crisis (PDF)

"There is a real retirement crisis in the United States, but there is also a fake one. This article attempts to bring some levity and perspective as to which pieces of the sky are, in fact, falling.... [By] 'crisis' we don't mean anything obvious like war, famine, or national penury. Instead, 'retirement crisis' has come to mean simply that people aren't saving as much as they should and won't be able to retire with enough money to maintain their late-career standard of living. Admittedly, no one ever says it that way, but that's what they mean. This is not a crisis."

Mixed But Encouraging Signs for Retirement Saving by Millennials (PDF)

11 pages. "Over 80 percent (81.37 percent) said they are currently saving for retirement ... While over a third of respondents (37.25 percent) say they are saving 5 percent or more -- which is right on track or close to it -- nearly 18 percent (17.65 percent) say they're saving zero, while nearly half (45.1 percent) are saving at inadequate levels. Together, that's 62.75 percent who are saving inadequately."

Required Minimum Distributions for 5% Owners of Companies Sponsoring Retirement Plans (PDF)

"It's possible for an individual's ownership percentage to change. The timing of such a change can have a critical impact on whether the individual is required to take an RMD. An explanation of the current rules for 5% owners follows, as well as some examples that outline how ownership changes can affect RMD requirements."

15 Misconceptions About the Three Principal Fiduciary Roles in a Retirement Plan (PDF)

"In the law, the definitions of 'trustee,' 'administrator,' and 'named fiduciary' are clear; but the practical application of which duties belong to which person varies enormously based on individual plan document language. This article attempts to clear up some of the haze."

The Debate Over 'Open' Multiple Employer Retirement Plans (PDF)

"[O]pen MEPs are, and have always been, among the safest and most beneficial retirement plan structures when properly governed. Proper governance includes ensuring that the plan meets the provisions of ERISA, and in particular the Annual Report (i.e., Form 5500) and audit requirements.... The question of a MEP's single plan status under ERISA is not new, but the recent attention has been substantial.... What is the practical impact if an open MEP is not a single plan for ERISA purposes as the DOL's guidance suggests? On the surface all of ERISA's many requirements would then apply at the individual employer level and this might seem a cause for concern, but as a practical matter this does not have any impact on the ability of the participating employers to comply with the requirements under ERISA because ERISA compliance is outsourced to the MEP's fiduciaries."

Game Changer, Revisited: The Final Conflict of Interest Rules (PDF)

15 pages. "[C]ertain key ramifications suggest themselves. [1] Forced conversion to fiduciary status ... [2] The 'ERISA-fication' of IRAs ... [3] A new paradigm for rollovers ... [4] Migration to fee-based service ... [5]New Compliance Infrastructure."

Allocating Pretax and After-Tax Amounts to Multiple Destinations; Tracking After-Tax Amounts in Traditional IRAs (PDF)

"[IRS Notice 2014-54] presents a middle-of-the-road approach that incorporates Sections 72(e)(8) and 402(c)(2) and provides new planning opportunities for participants with after-tax amounts who want to arrange a multiple destination distribution.... When a 401(k) participant has after-tax dollars in his or her account, the plan administrator tracks the amounts and, upon distribution, reports them appropriately on Form 1099-R. But when there are after-tax amounts in a traditional individual retirement account (IRA), they are generally not tracked by the institution holding the IRA. Instead, the IRA owner is responsible for keeping track of after-tax amounts."

Mid-Year 401(k) Testing -- How to 'Use' and 'Misuse' Projected 401(k) Test Results

"If the sole purpose for running a mid-year test is to use it as a tool to limit your HCEs so that they can scale back their contributions, ... think again. The only thing that this accomplishes is having these employees fail to maximize their contributions. If you don't fail or generate refunds, you're simply not maximizing benefits and you will almost always shortchange the HCEs and they will leave money on the table that could have been in the plan."