Here is an excellent article, by way of workplace prof, on the fees charged in 401(k) plans, their impact on performance, and the difficulty of even learning about them. We have talked before about how challenges to excessive fees charged to 401(k) plans is the new growth stock in ERISA litigation, and many people
401(k) Plans
More on 401(k) Fees and ERISA
By Stephen Rosenberg on
Posted in 401(k) Plans, Fiduciaries
For those of you readers who are interested in the issue of fiduciary liability for excessive 401(k) fees – and who isn’t? – here is more on the subject. I posted before about ways to avoid exposure to these types of claims, and Susan Mangiero has more on that topic here. Meanwhile, Workplace Prof has…
401(k) Plan Fees and Breaches of Fiduciary Duty
By Stephen Rosenberg on
Posted in 401(k) Plans, Fiduciaries
Some of you hopefully saw my recommendation the other day concerning this morning’s webinar on 401(k) plan fees and the attendant obligations of fiduciaries. The webinar discussed in detail the obligations of plan sponsors and other fiduciaries with regard to 401(k) plans and their accompanying fees. On the key issue of how to avoid incurring liability for breach of…
Investment Management Fees, and Contract Geeks
By Stephen Rosenberg on
Two things to chew on over the holiday, other than the turducken (I have always wanted to use that word in a sentence), one to know about before it occurs, the other to note before it disappears. I guess I could take that dichotomy a little further, and note that one concerns the first half…
401(k) Plans and Pensions: Are They Enough?
By Stephen Rosenberg on
Posted in 401(k) Plans, Retirement Benefits
I wanted to pass along today a fascinating law review article by one of the better ERISA scholars, Susan Stabile, on the retirement benefit system. In the article, “Is It Time to Admit the Failure of an Employer-Based Pension System,” to be published in the Lewis & Clark Law Review, Professor Stabile raises…
401(k) Plans and ERISA Class Actions
By Stephen Rosenberg on
Posted in 401(k) Plans, Fiduciaries
Jerry Kalish has a terrific post, drawing on a law firm white paper, about the potential ERISA liabilities of financial advisors and others who manage or otherwise help to run company 401(k) plans. As he discusses, class action lawsuits are being filed alleging ERISA violations in the operation of such plans; the suits stem…
ERISA and Retirement Benefits
By Stephen Rosenberg on
Freddie Mac’s Stock Drops, then Settles
By Stephen Rosenberg on
Posted in 401(k) Plans
The mortgage giant Freddie Mac has now agreed to a settlement of claims against it stemming from the effect of questionable accounting on the stock holdings of employees enrolled in its 401(k) plan. As Stephen Taub nicely sums it up:
Freddie Mac agreed to pay $4.65 million to settle a class-action lawsuit brought under the
…
Stock-Drop Suits
By Stephen Rosenberg on
Posted in 401(k) Plans, Retirement Benefits
Nice informative story out of the National Law Journal on the so-called stock-drop suits, which allege breaches of fiduciary duty under ERISA by trustees charged with managing company 401(k) plans. The lawsuits in question were “filed on behalf of employees who lost money in their 401(k) and other retirement plans because of the declining price…
401(k)s and ERISA
By Stephen Rosenberg on
Posted in 401(k) Plans, Fiduciaries
A terrific paper on the application of ERISA and its fiduciary duty standards to 401(k) plans and to the people who run them is available free right now from the ABA. As employee benefit plans, these retirement plans are within ERISA’s ambit and the companies and individuals who operate them are subject to the fiduciary…