Tag: retirement plan litigation

Rainbow ESOP Challenge Easily Beats Motions to Dismiss

Plaintiffs in the lawsuit are participants and beneficiaries of the Rainbow Disposal Co., Inc. Employee Stock Ownership Plan, who seek to restore losses to the plan and to otherwise remedy a complicated series of alleged breaches of fiduciary duty.

DB Plan Sponsor Owes Taxes for Miscalculating Annual Benefit Limitation

A tax court found that the Commissioner of Internal Revenue’s report, which was prepared by an actuary, was in line with actuarial practice in calculating the annual benefit limitation, which drives DB plan contribution amounts, while the plan sponsor's report, not prepared by an actuary, was not. A federal appellate court agreed with this.

TPA Accused of Stealing Assets From Retirement Plans

Vantage Benefits, a TPA and recordkeeper, has already been ordered to restore funds to one 401(k) plan; now a new lawsuit accuses it of stealing funds from MBA Engineering's 401(k) and cash balance plans as well as approximately 20 others.