The draft of the legislation, which will likely be subject to debate and amendment, at this stage includes a number of retirement-focused provisions, including ‘special partition relief’ for struggling union pensions.
“Iowans expect their financial professional to act in the consumer’s best interest when recommending an annuity,” says Iowa Insurance Commissioner Doug Ommen. “Iowa not only expects it, but we will require it.”
The lengthy new complaint stretches over some 150 pages and includes 12 counts that echo those filed last week in a separate lawsuit targeting an ADP multiple employer plan.
One positive point in some otherwise sobering data is the role that defined contribution (DC) plans play in helping middle class Americans generate a stable financial future.
The revised policy, instituted in response to the coronavirus pandemic, will remain in effect until the revenue procedure is modified or superseded.
The agency says future guidance will be like that under the Katrina Emergency Tax Relief Act of 2005 (KETRA) to the extent the provisions of Section 2202 of the CARES Act are substantially similar to the provisions of KETRA that are addressed in that notice.
The plan's investment adviser is also named as a defendant, accused of helping select and retain high-cost, poorly performing funds.
The lawsuit almost completely mirrors allegations in complaints recently filed by the same law firm.
A district court judge dismissed the case on the basis that plaintiffs had not sufficiently alleged an alternative course of action that their plan fiduciaries could have taken.
The complaint notes that the definition of compensation for deferral purposes in the plan document includes tips received.
The plaintiffs say there is additional evidence for their claims, “such as incorrect reporting on mandatory Department of Labor disclosures about the amount of administrative fees paid by [the] participants.”
The DOL alleged Wilmington Trust caused losses to ESOPs when it authorized them to pay more than fair market value for privately held employer stock.
FINRA previously addressed reporting of Paycheck Protection Program loan forgiveness in its FAQs related to COVID-19.
A court found most actions alleged in participants' complaint were not fiduciary functions.
One of the defendants in the case, the trustee who oversaw a questioned ESOP buyback transaction, was at the time allegedly working as the chief financial officer of a large chain of dental practices.
The agency is relaxing timing rules for certain actions and notices if timing is affected by the COVID-19 outbreak.
The plaintiffs sued for failing to seek competitive bids for recordkeeping, but admitted to not knowing the amount Trader Joe’s paid in recordkeeping fees.
The lawsuit alleges the defendants did not try to reduce the plan’s expenses or exercise appropriate judgment to scrutinize each investment option that was offered in the plan to ensure it was prudent.
A bill introduced in the House of Representatives would increase 415 annual addition and 402(g) elective deferral limits for the 2020 calendar year.
At a digital hearing conducted by the Iowa Insurance Division, industry representatives asked the state regulator to grant a safe harbor for broker/dealers that comply with Reg BI.