Frederick Reish, partner in the Drinker Biddle & Reath Employee Benefits & Executive Compensation Practice Group and Chair of the Financial Services ERISA Team, suggests a good way to think about ERISA Section 404(c) is as “a relatively inexpensive insurance policy.”
YRC Worldwide Inc. has agreed to pay $6.5 million to settle lawsuits brought by its employees over losses in their retirement accounts from investments in company stock.
A U.S. District Court has certified as a class action a suit against YRC Worldwide that claims it offered company stock as a 401(k) investment option when it was no longer prudent.
Secretary of Labor Hilda L. Solis has once again contended that safe harbor status does not shield fiduciaries from liability for imprudent plan investments.
Secretary of Labor Hilda L. Solis has warned a federal appellate court that protections for plan participants could be harmed if it does not overturn a lower court ruling giving a directed trustee safe harbor protection against wrongdoing allegations.
Plan sponsors got a bit of a roadmap from the U.S. Department of
Labor’s Employee Benefits Security Administration (EBSA) about how to
rely on a summary prospectus to meet the prospectus delivery component
of safe-harbor provisions.
When it comes to qualified retirement plans, there are three kinds of people: people who are fiduciaries and know it, people who aren’t fiduciaries and know it, and people who are fiduciaries and don’t know it.
Faced with pressure to take another look at its February 2009 decision in a widely watched 401(k) excessive fee case, a federal appellate court has turned down the rehearing request but issued an addendum sharply limiting the earlier ruling’s scope on the issue of 404(c) protections.
The U.S. District Court for the Northern District of Illinois ruled that Motorola Inc. and fiduciaries of its 401(k) plan did not breach their fiduciary duties under the Employee Retirement Income Security Act (ERISA) by continuing to offer company stock as an investment option in the plan.