Compliance

Citi Hit With Another Lawsuit Over 401(k) Plan

Citigroup, which suffered a recent management shakeup over its subprime mortgage crisis fallout, has been charged with imprudently allowing 401(k) company stock investments despite “serious mismanagement.″

Class Action Filed Against State Street

Another pension fund has filed suit against State Street for “investing purportedly conservative, risk-averse bond funds in high risk mortgage backed securities and exotic financial instruments.″

IMHO: Theories of Relativity

I was having coffee with a buddy of mine a couple of weeks back, and before long the discussion turned to music; specifically the new Bruce Springsteen CD.

State Street Faces Two More Lawsuits Over Bond Fund Losses

Two more lawsuits have been filed against State Street Corp. over its now controversial stewardship of fixed income funds marketed as following conservative trading strategies, but which faced substantial losses from subprime mortgage-related holdings.

SEC Looks into Merrill’s Florida Pension Consultancy Practice

Merrill Lynch is under scrutiny from the Securities and Exchange Commission (SEC) for allegations that its Florida consulting operation charged hidden fees and engaged in conflicts of interest, according to letters it sent to various pension boards in the state.

Ways and Means Hears Testimony on Appropriateness of Plan Fees

The House Committee on Ways and Means held a hearing October 30 to determine whether workers’ retirement savings are being eroded by excessive and unnecessary administrative and investment fees assessed by pension plan providers.

Merrill Sues over Racially Charged E-mails to Employees

Merrill Lynch&Co Inc. has sued an unnamed defendant it alleges impersonated a bank manager and then sent racially denigrating e-mails to civil rights leader Al Sharpton and several black Merrill investment brokers.

Citigroup Sued Over Possible ERISA Violations

Citigroup has been hit with a lawsuit alleging the financial services giant committed a variety of fiduciary breaches in improperly having its 401(k) plan do business with its affiliates and subsidiaries.

IMHO: It’s About Time

It may have lacked the hoopla of a midnight Harry Potter release, but in retirement industry circles, last week’s publication of the Department of Labor’s final regulations on qualified default investment alternatives (QDIAs) was nearly as eagerly anticipated.

Deere Fee Suit Decision Stands

A federal judge has refused to reconsider his earlier ruling that Deere&Co. was not obligated to disclose the revenue sharing arrangements in its 401(k) plan, clearing the company of fiduciary breach allegations.

409A Tax Reporting Guidance is Extended to 2007

The Internal Revenue Service (IRS) has issued interim guidance generally extending to 2007 the 409A tax reporting guidance that was applicable to 2005 and 2006 tax years.

DoL’s Campbell Gives More Details of Final QDIA Regs

Saying it was “probably the most important regulation issued resulting from the Pension Protection Act of 2006,″ Bradford Campbell, Assistant Secretary for the Employee Benefit Security Administration (EBSA) at the Department of Labor, addressed media representatives regarding the final regulations on Qualified Default Investment Alternatives (QDIAs).