Safeway and Aon Hewitt Investment Consulting will pay a combined $8.5 million to settle two lawsuits accusing them of causing excessive fees in Safeway's 401(k) plan.
The attorneys argue that the CalSavers program goes against ERISA's intent for a voluntary benefits offering and a nationally uniform plan administration structure.
Experts discuss changes that will affect advisers, such as Reg BI, the new Customer Relationship Summary form and the DOL, post-Secretary Acosta.
Even outside of saving for retirement or a college education, an investor’s ability to save for any future goal is drastically diminished by the proposed financial transaction tax in Senate bill S. 1587, Vanguard says.
The address for pre-approved plan submissions has not changed.
Trial was to begin on the case September 16.
“The plaintiffs’ lawyer playbook is the same,” says Brian Netter of Mayer Brown. “First, survive a motion to dismiss, and then subject the defendant to a very expensive discovery process. It creates incentive to enter into a sizable settlement.”
The plaintiffs in the ERISA lawsuit say they intend to seek injunctive relief preventing MIT from hiring vendors for its retirement plan that are donors or accepting donations from existing vendors to the plan.
Two advisory firms argue they are harmed by the “best interest” rule because it causes them a competitive disadvantage with respect to broker/dealers, and because the rule will increase rather than abate investor confusion.
The move by Greystar comes after the 9th U.S. Circuit Court of Appeals issued a ruling that Schwab could enforce its retirement plan’s arbitration clause requiring participants to file individual claims and to waive class-action claims.
A District Court has affirmed most of the recommendations made by a Magistrate Judge, who previously issued a memorandum concluding the ERISA fiduciary breach case should proceed.
The complaint said Atrium has never satisfied the Federal law definition of a government of a state, a government of a political subdivision, or an agency or instrumentality of such and, therefore, its benefit plans do not qualify as ERISA-exempt governmental plans.
Plaintiffs says defendants failed to properly monitor and control the plan’s expenses, and allowed the plan to become one of the most expensive “jumbo” 401(k) plans in the country.
However, a U.S. District Judge affirmed a motion to dismiss a claim alleging a prohibited transaction between MIT and Fidelity Investments.
The Securities and Exchange Commission takes issue with revenue sharing tied to a preferred broker’s “transaction fee” program, underscoring how fee-based advisers are not immune from allegations of conflicts of interest.
In a brief of amici curiae filed with the U.S. Supreme Court, they argue that an appellate court decision undermines the value of retirement plan disclosures and should be reversed.
The Commission says the broker/dealer charged clients 12b-1 fees when they qualified for lower-cost shares.
A district court granted summary judgment to OSF Healthcare System, but the 7th Circuit found there are genuine issues of material law that warrant more discovery in the case.