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Retirement Plan Sponsor Sues Adviser, Alleging Failure to Advise Plan of Amendment Implications

"Great Lakes Management Co. is suing its retirement plan consultant and retirement plan adviser USI Consulting Group Inc., alleging the firm negligently counseled the retirement plan to change plan contributions to a safe harbor and true-up that caused it to contribute nearly $100,000 over two years.... Great Lakes Management claims USI Consulting Group owed a duty to advise the plan of the implications -- including the cost to the company -- of the amendments, particularly the true-up." [Great Lakes Management Co. v. USI Consulting Group, Inc., No. 24-1093 (D. Minn. complaint filed Mar. 28, 2024)]

Navigating Pension Risk: Strategies for a Volatile Market

"An effective de-risking approach often involves collaboration among actuaries, annuity consultants and investment professionals to evaluate a plan sponsor's unique circumstances and goals.... Compared to siloed consulting models, an integrated methodology can lead to more efficient execution and better outcomes."

District Court Dismisses ERISA Excessive Fee Lawsuit Against Service-Provider

" '[T]he service codes in the 2018 Form 5500 filings of [10 other employers' 401(k) plans, produced by the plaintiffs,] indicate that the services provided are different or more limited than those the plan participants receive. Most notably, none of these 10 purportedly 'comparable' plans offer participants the pension consulting or valuation services [USI Consulting Group] offers to the plan participants,' according to the order." [Cunningham v. USI Ins. Servs., LLC, No. 21-1819 (S.D.N.Y. Mar. 25, 2022)]

Smarter TDF Oversight Can Reduce Costs and Risks

"As the default investment option in most retirement plans, TDFs typically hold the majority of plan assets -- yet many employers fail to evaluate them regularly, even as market conditions, participant demographics and fee structures continue to evolve. A TDF that was appropriate four years ago may now be underperforming, restructured or overpriced. In fact, average expense ratios have dropped significantly, especially for index-based and collective investment trust versions.1"

Why Bundling Retirement Services Is a Smart Move for Employers

"Retirement plan sponsors continue to shift plan administration to external service providers at a rapid rate. The primary drivers? Cost reduction, improved efficiency and the ability to free up internal resources. As retirement plan complexity grows and fiduciary liability increases, employers are turning to [total retirement outsourcing] to simplify plan management and gain more value from their benefits investment."

Pension Indicator, March 2020

"Plans that fared best in March were open/accruing benefits but have a large allocation to high quality long duration fixed income (this is a select group).... [S]uch ongoing plans saw liabilities decrease by approximately 7.6% in March, whereas old frozen plans experienced a 4.8% reduction in liability values. Plans with a more growth-oriented asset allocation strategy (i.e. more public equity) could have experienced larger asset declines (approximately -10%) than those with more of an LDI focus (approximately -7%)."

2025 Compliance Calendar for Defined Contribution Retirement Plans (PDF)

"This Retirement Plan Compliance Calendar summarizes the major requirements that apply to Defined Contribution (DC) plans for 2025. Due dates are based on a calendar plan year and are applicable to plans subject to [ERISA]."

Terminating an Overfunded Pension Plan: Who Gets the Excess?

"To determine how excess plan funds can be exhausted, which may include a reversion to the plan sponsor, there are seven possibilities to consider. As always, the place to start with any retirement plan issue is to answer the question: what does the plan say?"

How Employers Can Help Employees Guard Retirement Savings Against Market Volatility

"Promote the usage of target date funds (TDFs)  ... Provide retirement income planning tools and resources ... Establish emergency cash accounts ... [E]ncourage their employees to: Meet with a financial planner and use retirement income planning tools ... Develop a contingency plan ... Revise timing of retirement ... Ensure adequate insurance coverage during retirement for healthcare, long-term care and life insurance."

2024 Compliance Calendar for Defined Contribution Plans (PDF)

"This Retirement Plan Compliance Calendar summarizes the major requirements that apply to Defined Contribution (DC) plans for 2024. Due dates are based on a calendar plan year and are applicable to plans subject to [ERISA]."