We all know that in reality, most companies that sponsor retirement plans, including 401(k)s, for their employees bring in outside advisors to manage the plan. There are at least two primary reasons for this, the first being that most companies don’t have the expertise to select investments and otherwise run plans themselves, and hope to
401(k) Plans
LaRue is Decided . . . Well, Sort of
By Stephen Rosenberg on
Posted in 401(k) Plans, Fiduciaries
In an opinion it issued on Monday, the United States Court of Appeals for the Sixth Circuit confronted essentially the exact same facts and issues as are at play in the LaRue case currently pending before the Supreme Court, and effectively entered its own prediction as to how the Supreme Court will rule in LaRue…
The Recent History of Subprime Litigation
By Stephen Rosenberg on
Kevin LaCroix, at his D&O Diary blog, has a tremendous history of the recent filing of subprime litigation, including class actions, many filed under ERISA. While I don’t necessarily agree with each of his interpretations of that history, it’s as good an overview of the subject as a whole that I have seen in any…
SmartMoney on the Practicalities of Complying With ERISA
By Stephen Rosenberg on
This is a law oriented blog, obviously, and one of the things that is always worth remembering is that the complicated legal issues played out in the cases discussed here have real world implications for plan participants and for businesses trying to provide benefits to their employees. A nice reminder of that is here,…
On Regulation of Fiduciaries and Pension Plan Vendors
By Stephen Rosenberg on
I was interviewed by a reporter recently concerning the subprime mess and its implications for pension plan fiduciaries, and the issue came up as to whether further regulation was the answer, as she had heard from a number of others. To me, the ongoing problem we are seeing with fiduciary breaches – or at least…
Talkin’ With Tom Gies, Counsel for the Respondents in LaRue
By Stephen Rosenberg on
I promised awhile back that I would run more interviews at some point on this blog, and we return today to our – granted, somewhat sporadic – series of interviews with movers and shakers in the worlds of ERISA and insurance. What provoked me to get back into the interviewing business, which I noted before…
Protecting Corporate Officers from Fiduciary Exposure
By Stephen Rosenberg on
Here’s an interesting article on one particular aspect of ERISA breach of fiduciary duty cases, namely the targeting as defendants of executive officers of the company sponsoring a pension or 401(k) plan; the gist of the article is that there are tactical and psychological benefits that accrue to counsel representing plan participants when they name…
Roundup at the LaRue Corral
Thoughts on the Oral Argument in LaRue v. DeWolf, Boberg
Just read the transcript of Monday’s oral argument in LaRue, which you too can read right here. Interesting argument, and interesting lines of questions from the court, although I am skeptical as to how much guidance as to the court’s thinking one can draw from the Justice’s questions themselves. In many ways, the…
LaRue v DeWolff, Broberg and the Concept of Administration Risk in ERISA Plans
By Stephen Rosenberg on
Oral argument at the Supreme Court is scheduled for Monday in LaRue v DeWolff, Broberg & Associates, which presents the technical question of whether a loss to only one participant’s 401(k) plan is actionable as a breach of fiduciary duty causing a loss to the plan, but which on a broader level concerns the…