This is an interesting paper, that comes to us via Workplace Prof, and which provokes further thought on the issue of the litigation boom involving 401(k) plans. The paper finds that pension plans outperform mutual funds, and attributes that differential to costs buried within mutual funds, as well as to the size of
Fiduciaries
401(k) Plans and Breach of Fiduciary Duty Lawsuits
By Stephen Rosenberg on
I have written before, and frequently (such as here and here), about the coming boom in litigation against plan sponsors and fiduciaries over alleged excessive fees and other alleged malfeasance in the administration of 401(k) plans. One point I have tried to drive home in my posts, including here and here, is that…
Beck v Pace International Union
By Stephen Rosenberg on
Well, my trial’s still ongoing, and I find myself short of time to really comment in any detail on the latest details in the always percolating and never quiet world of ERISA and insurance law. However, I do still find time to continue my own reading on the subject, and so I am able to…
Defined Benefit, Defined Contribution, and The Psychological Effect on Litigants
By Stephen Rosenberg on
Here is a very neat and interesting paper contrasting defined benefit plans – i.e. pensions – with defined contribution plans – i.e. 401(k) plans – and addressing, in particular: (1) the decline in the former in the workplace and replacement by the latter; and (2) the problems engendered by that change. In essence, the authors…
The Supreme Court’s Next Words on Fiduciary Duties and Pension Plans
By Stephen Rosenberg on
Here is a terrific and in-depth review of the underlying facts and issues in the pending Supreme Court case of Beck v. Pace International Union, which is scheduled to be argued later this month, and which involves the extent, if any, to which fiduciary obligations apply to a decision to terminate a pension plan…
Merger and Anti-Cutback Provisions of ERISA, and a Handy Rule of Thumb
By Stephen Rosenberg on
This case, out of the United States District Court for the District of Massachusetts, provides a nice little rule of thumb for amending, merging or otherwise altering retirement benefit plans – namely, that it makes it hard to get sued and lose if you make the changes in a way that avoids altering the actual benefit…
Insurance Coverage for Pension Plan Fiduciaries
There is an interesting interrelationship between the two primary subjects of this blog, ERISA litigation and insurance coverage, and one that I had not really thought much about until Rick Shoff, who works with Mike Pratico over at CapTrust Financial Advisors, raised it in a conversation recently. As I have mentioned in the past,…
Equitable Relief Under ERISA in the First Circuit Post-Sereboff
By Stephen Rosenberg on
The district courts in the First Circuit have been so busy issuing ERISA related decisions recently that it has become difficult to find time to post on other things that I also want to talk about. That said, however, the District Court for the District of Maine just issued a remarkable opinion that I both…
Congressional Hearings on 401(k) Plan Fees and What They Mean for Plan Fiduciaries
By Stephen Rosenberg on
Wow. Don’t think the heat is on for company 401(k) sponsors and other fiduciaries of employee retirement benefit plans who may not have done enough benchmarking and due diligence to make sure that mutual fund and advisor fees are as low as possible? Then take a look at this article out of the Washington Post…
What Happens When Reimbursement of Overpaid Benefits Is Equitable for Purposes of ERISA, but Nonetheless Inequitable?
By Stephen Rosenberg on
Here is an interesting little twist on the common scenario of a plan overpaying retirement benefits and then seeking reimbursement, as allowed under the plan’s terms, of the overpayment from the plan beneficiary. Normally, these cases are focused on whether the reimbursement qualifies as equitable relief that the fiduciary is allowed to pursue. In this…