Tag: retirement plan fees

A BrightScope/ICI study also found collective investment trusts (CITs) accounted for a larger share of assets in larger plans than smaller plans.

With its fee reduction, 21 of the 22 Fidelity Freedom Index Funds will have total net expenses lower than comparable Vanguard index target-date funds, Fidelity says.

The lawsuit accuses the sponsor of a small 401(k) plan with failing to monitor and correct excessive fees.

An appellate court revived two claims in the lawsuit that had been previously completely dismissed by a District Court, but in a dissenting opinion, one judge expressed concern about permitting implausible allegations to result in a large settlement.

City National argued that if a District Court had considered certain offsets to the damages award, it would have been clear that the bank never received more compensation than necessary for performing recordkeeping services for its own plan.

Vanderbilt will conduct a request for proposals (RFP) for a new recordkeeper, among other things.

Fewer than one in ten “mega plans,” those with assets greater than $1 billion, had a fully bundled structure as of the end of 2018, according to new data provided by Callan.

Anthem has agreed to pay $23.6 million to settle the lawsuit in addition to non-monetary terms.

According to the recent complaint, Fidelity has breached its fiduciary duties to retirement plans by charging mutual fund and other investment companies a substantial fee as a condition for their investment vehicles being offered on Fidelity’s fund platform.

Comparing Employee Retirement Income Security Act (ERISA) cases to trust law cases, a federal judge decided to side with "the great weight of authority in the federal courts holding actions under ERISA to remedy alleged violations of fiduciary duties are equitable in nature," so there is no right to a jury trial.

The 401k Averages Book also shows smaller plans continue to pay higher fees than large plans.

The lawsuit accuses Fidelity of requiring "secret" payments from funds to make up for declining amounts of revenue sharing payments received by the firm as a result of the increasing use of passive mutual funds, institutional and R6 share classes of mutual funds and collective trusts

The defendants were denied summary judgment on all claims.

No reason was given for why the plaintiff decided on the voluntary dismissal.

In the majority of cases, plan sponsors that participated in Callan’s 2019 Defined Contribution (DC) Trends Survey said their plan consultant/adviser conducted fee benchmarking, and in 2019, sponsors will be looking to switch to lower-fee share classes and to more institutional vehicles.

In addition to a gross monetary payment of $10.65 million, the university agreed to other non-monetary actions.

Plaintiffs in the case say the appellate court held them to stricter pleading standards than it did plaintiffs in other Employee Retirement Income Security Act (ERISA) lawsuits.

The settlement agreement leaves open a chance to bring a new claim regarding the offering of a money market fund in the plan.

The plaintiffs accused Edward Jones of favoring its own investments and those of its “preferred partners” in its 401(k) plan, at the expense of performance; they also raised questions about excess recordkeeping fees.

The appellate court found that the allegations showed only that Chevron could have chosen different vehicles for investment that performed better during the relevant period, or sought lower fees for administration of the fund, not that any breach of ERISA duties had occurred.