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Yet another of the suits alleging that plan fiduciaries “chased low fees” and were inattentive to performance results has been dismissed. This was another of the series of roughly a dozen suits filed on behalf of participant-plaintiffs by Miller Shah LLP—this one in August 2022. Plaintiffs... READ MORE
Last week an article in an industry publication led with the title “401(k) experiment has failed, fueled U.S. retirement crisis, labor economist says.” In what I am sure generated a fair number of “clicks” that turned out to be the pronouncement of none other than Professor Teresa Ghilarducci,... READ MORE
One of the optional provisions in the SECURE 2.0 Act that some employers were very excited about is the provision to allow a 401(k) match based on a participant’s student loan payment rather than deferrals. This was seen by many as a way to help young (or not so young) employees start saving for... READ MORE
The American Retirement Association (ARA) is calling on the IRS to revise several provisions contained in the proposed long-term, part-time employee (LTPTE) rules for 401(k) plans. Chief among the ARA’s recommendations is for the IRS to revise the proposed rule regarding vesting service to conform... READ MORE
High employee turnover in the service industries—particularly food service—traditionally made it difficult to offer 401(k)s to employees, something SECURE 2.0 is looking to change. The student loan match program and financial wellness initiatives are generally receiving a lot of attention, mainly... READ MORE
The IRS has made the 2023 Cumulative List of Changes in Plan Qualification Requirements for Defined Contribution Qualified Pre-Approved Plans available. The new list, contained in Notice 2024-3, provides updated listings of required modifications and information packages for DC plans.  The 2023... READ MORE
Retirement plan litigation continues at a rapid pace and with massive, surprisingly quick, settlement numbers. The last quarter of 2023 saw a continued variety of litigation under the Employee Retirement Income Security Act (ERISA), including: dismissal of performance-focused target date funds (... READ MORE
Prudential Financial announced Jan. 25 that it is collaborating with Fidelity Investments to address growing demand for a workplace retirement plan option that will convert participants’ retirement savings into a protected stream of income. Named Prudential SimplyIncome, the new option provides a... READ MORE
Following the assessment of an independent fiduciary that the settlement terms were reasonable, the parties in a 401(k) excessive fee suit have moved for approval by a federal judge. The suit was filed back on Aug. 11, 2021—with plaintiffs Chris Carrigan, Michael Venti, and Sylvain Yelle (... READ MORE
A new retirement readiness report initially appeared to find good news—two-thirds of Americans (67%) have at least some money invested in retirement accounts, even if 1 in 4 doesn't know how much they’ve saved. Yet a deeper dive into the numbers revealed the racial savings gap’s extent—and... READ MORE
Well, here we are again at the end of yet another workweek …and (nearly) another month…and just look at what has happened to these guys and gals… In Wales, UK…here are some things that DON’T warrant a call for an ambulance (though they have apparently been used)…  In Chicago, Illinois…there’s... READ MORE
New research by Cerulli Associates finds that more than two-thirds (70%) of retirement specialist advisors say participants in their defined contribution (DC) plans frequently ask them questions about individual retirement account (IRA) rollover decisions. But given the existing and proposed... READ MORE
Despite a reputation for being unsophisticated with their use of technology, 92% of advisors would “jump ship” over bad technology and 44% say they already have. The findings demonstrate that the next generation of wealth managers expects more from their tech stack, wealth management tech firm... READ MORE
Surveys show participants want it—and (other) surveys show plan sponsors are considering it. That focus is all about retirement income offerings—but as retirement plans evolve and the landscape of retirement income solutions continues to expand, how does an advisor keep up with all of the options... READ MORE
The New York-based, fintech 401(k) service provider announced that it has launched the first commercial product allowing small- and mid-sized employers to automatically match employee student loan payments with a 401(k) contribution. Betterment at Work’s new offering comes as Section 110 of the... READ MORE
The Pension Benefit Guaranty Corporation (PBGC) on Jan. 19 announced that it has chosen the firms that will participate in its Smaller Asset Managers Program (SAMP).  SAMP is intended to reduce barriers to competition and create opportunities for smaller asset investment management firms. SAMP... READ MORE
A new report offers a new level of transparency on recordkeeping fees paid by the large plan targets of excessive fee suits—and calls out a number of misleading claims and benchmarks used by the plaintiffs’ bar in bringing those suits. According to the announcement from Encore Fiduciary, formerly... READ MORE
ERISA consultants at the Retirement Learning Center (RLC) Resource Desk regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans and other types of retirement savings and income plans, including nonqualified plans, stock... READ MORE
Employer plan sponsors and fiduciaries that are subject to the prohibited transaction rules as set forth in ERISA and the Internal Revenue Code (IRC) will want to take note of new procedures for granting administrative transaction exemptions.    The Department of Labor’s Employee Benefits Security... READ MORE
Noting that “at some point, there must be some endpoint to this time-consuming and expensive cycle of litigation,” a federal judge has dismissed a 401(k) excessive fee suit. That “expensive cycle” dates back to October 2020 when a suit (Guyes et al. v. Nestle USA Inc. et al.) was brought in the U.... READ MORE
One provision in particular in SECURE 2.0 is receiving the lion’s share of attention from retirement plan sponsors and participants. Section 110 allows student loan payments to be treated as elective deferrals for purposes of matching contributions. Yet guidance on how it will happen is needed... READ MORE
Last week, a trio of academics rolled out a plan to “save” Social Security—by undermining the 401(k). Their “plan” is diabolically simple, though not unique. They’d just take away the tax preferences that support and encourage employment-based retirement plans—and “give” that money to Social... READ MORE
A financial services trade group opposed to implementing the latest iteration of the Department of Labor’s (DOL) fiduciary rule released the results of a survey it recently conducted on potential costs. The Financial Services Institute (FSI), an independent broker-dealer advocacy organization, and... READ MORE
More American savers will turn 65 this year than at any point in history, with roughly 12,000 people a day reaching the age that most target for retirement, but a new report suggests that many are second-guessing whether they are ready to retire.   The Nationwide Retirement Institute surveyed 1,... READ MORE
Increasing participant engagement in retirement plans is an ongoing and evergreen challenge, one that SECURE 2.0 provisions going into effect in 2024 may help mitigate, according to a new report from Cerulli Associates. The two generating the most interest are offering financial incentives to... READ MORE

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