Deals & People January 6, 2015

PSCA Appoints Executive Director

Nonprofit trade association PSCA has named Tony Verheyen as executive director, following the resignation of Bob Benish.
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Bob Benish has resigned as executive director of the Plan Sponsor Council of America (PSCA), a non-profit trade association supporting employer-sponsored retirement plans, the organization said in a statement.

Tony Verheyen, a member of PSCA’s board of directors and the executive committee, has been named executive director.

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“We recognize Bob for his five years of stewardship of PSCA,” Steve McCaffrey, chairman of PSCA’s board of directors, said in a statement. “His contributions have been appreciated and we wish him well.”

McCaffrey called the appointment of Verheyen the first of several steps PSCA is taking to build a new leadership team by and for its members. The association’s plans call for rejuvenated member outreach, member training programs, and expanded focus into topics outside defined contribution retirement plans, such as health savings accounts, and nonqualified deferred compensation plans.

Compliance January 5, 2015

DOL Investigating RadioShack 401(k) Plan

An SEC filing reveals that RadioShack is facing several lawsuits over the company stock investment offering in its 401(k) plan, and the DOL is investigating the plan.
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In an 11-K filing with the Securities and Exchange Commission (SEC), RadioShack Corporation revealed that the Department of Labor is investigating its 401(k) plan.

RadioShack said it received written notification from the DOL on November 14, 2014, that the agency would be conducting an official investigation beginning December 9, to determine if RadioShack’s 401(k) plan was operating in compliance with Title I of the Employee Retirement Income Security Act (ERISA). The letter from the DOL indicated that its review would cover plan years 2011 through the present.  The DOL conducted on-sight interviews and review of documents on December 15 and 16.

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Though the filing does not say what the DOL is investigating, it mentions that at least three participant lawsuits have been filed alleging breaches of fiduciary duties under ERISA. One lawsuit alleges fiduciaries of RadioShack’s 401(k) plans violated ERISA by failing to disclose the company’s true financial and operating condition to participants and beneficiaries of the plans and/or by offering RadioShack stock as an investment option under the plans when it was not prudent to do so. Also, according to the complaint, at least some of the defendants failed to provide plan participants information necessary to make informed decisions regarding RadioShack stock.

RadioShack, which is floundering financially, has frozen the stock fund to new investments. The company also announced it will stop its contributions to the plan effective February 1.

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