A recent Ninth Circuit decision has generated considerable controversy amongst employee benefits practitioners by holding that plan fiduciaries engaged in prohibited transactions when they amended the plan’s existing...more
9/22/2023
/ 401k ,
Benefit Plan Sponsors ,
Breach of Duty ,
Class Action ,
Compensation ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Investment Adviser ,
Real Party in Interest ,
Recordkeeping Requirements ,
Service Agreements
On November 22, 2022, the U.S. Department of Labor’s Employee Benefits Security Administration (the “DOL”) released final regulations (the “Final Rules”) that are intended to be more supportive of ERISA fiduciaries...more
On December 21, 2021, the Department of Labor (the “DOL”) published a Supplemental Statement (the “Supplemental Statement”) to its June 3, 2020 Information Letter (the “2020 Letter”) addressing fiduciary considerations for...more
1/14/2022
/ 401k ,
403(b) Plans ,
Compensation & Benefits ,
Defined Contribution Plans ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Information Letters ,
Investment ,
Investment Management ,
Private Equity ,
Retirement Plan ,
Risk Alert
On October 14, 2021, the U.S. Department of Labor’s Employee Benefits Security Administration (the “DOL”) published in the Federal Register a new proposed regulation (the “Proposed Rules”) on fiduciary responsibility in...more
11/22/2021
/ Comment Period ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Environmental Social & Governance (ESG) ,
Fiduciary Duty ,
Financial Services Industry ,
Investment Adviser ,
Investment Management ,
Proposed Regulation ,
Proxy Voting Guidelines ,
Regulatory Agenda ,
Regulatory Reform ,
Retirement Plan
On March 10, 2021, the U.S. Department of Labor (the “DOL”) issued a statement that it intends to revisit its final rules issued late last year on “Financial Factors in Selecting Plan Investments” (summarized here) and...more
On October 30, 2020, the U.S. Department of Labor (the “DOL”) issued a final rule on “ESG” investing which requires ERISA plan fiduciaries to base investment decisions on financial factors alone, prohibits fiduciaries from...more
On October 30, 2020, the U.S. Department of Labor (the “DOL”) issued a final rule on factors for selecting plan investments, which restricts “do-good” or “ESG” investing. In response to public comments, the final rule rolls...more
On September 4, 2020, the Department of Labor (“DOL”) published a proposed rule (the “Proposed Rule”) that would confirm its position that ERISA’s fiduciary duties of prudence and loyalty apply to an ERISA plan fiduciary’s...more
Among the many claims brought by plaintiffs challenging investment offerings in defined contribution plans is the claim that plans should offer stable value funds in lieu of more conservative capital preservation funds, such...more
8/18/2020
/ 401k ,
American Airlines ,
Benefit Plan Sponsors ,
Breach of Duty ,
Defined Contribution Plans ,
Duty of Loyalty ,
Duty of Prudence ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Motion for Summary Judgment ,
Popular ,
Prohibited Transactions ,
Retirement Plan ,
Standing
The U.S. Department of Labor’s (the “DOL”) new “fiduciary rule” package, issued on June 29, 2020, and published in the Federal Register on July 7, 2020, has three important components...more
7/13/2020
/ Best Interest Standard ,
Department of Labor (DOL) ,
Disclosure Requirements ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Field Assistance Bulletins ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Investment Management ,
IRA Rollovers ,
New Rules ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
On June 23, 2020, the U.S. Department of Labor (the “DOL”) issued a proposed rule (which was published in the Federal Register on June 30, 2020) that would amend its “investment duties” regulation set forth at 29 C.F.R. §...more
The Fifth Circuit in Schweitzer v. Inv. Comm. of Phillips 66 Sav. Plan dismissed claims against 401(k) plan fiduciaries related to allowing plan participants to hold a single stock that was not an employer security as a plan...more
On June 3, 2020, the Department of Labor (the "DOL") published an Information Letter confirming that an investment option under a 401(k) plan (or other defined contribution plan) may include a limited allocation to private...more
6/11/2020
/ 401k ,
Benefit Plan Sponsors ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Information Letters ,
Private Equity ,
Prohibited Transactions ,
Retirement Plan ,
Safe Harbors
On June 3, 2020, the Department of Labor (the “DOL”) published an Information Letter confirming that investment options under a defined contribution plan (e.g., a 401(k) or 403(b) plan) may include a limited allocation to...more
6/8/2020
/ 401k ,
Defined Contribution Plans ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Information Letters ,
Investment ,
Investment Management ,
Private Equity ,
Retirement Plan
Editor’s Overview -
Of course, on the top of everyone’s minds these days is COVID-19. In this edition of Proskauer’s ERISA Newsletter, our colleagues discuss some of the legislation and guidance that has been issued over...more
Editor's Overview -
We often talk about the importance of evaluating whether there are any procedural obstacles to plaintiffs pursuing their ERISA claims, particularly in complex, class actions where it may not be...more
4/3/2019
/ Administrative Remedies ,
Article III ,
Breach of Duty ,
Defined Contribution Plans ,
Discovery ,
Electronically Stored Information ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Financial Harm ,
Injury-in-Fact ,
IRS ,
Notice Requirements ,
Standard of Review ,
Standing
Editor's Overview -
In last quarter's Newsletter, we commented that all eyes were on President Trump's nomination to the U.S. Supreme Court, as the outcome of the appointment process can have a significant impact on the...more
10/3/2018
/ 401k ,
403(b) Plans ,
Attorney's Fees ,
Discovery ,
Electronically Stored Information ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Federal Rules of Civil Procedure ,
Fiduciary Duty ,
Fiduciary Rule ,
FRCP 26(b)(1) ,
Preemption ,
Recordkeeping Requirements ,
Retirement Plan ,
Standing
As we head into the thick of summer, all eyes are on President Trump's nomination to the U.S. Supreme Court to replace retiring Justice Anthony Kennedy and the impact the new Justice will have on shaping the law for...more
7/11/2018
/ 21st Century Cures Act ,
401k ,
403(b) Plans ,
Beneficiaries ,
Bi-Partison Balanced Budget Act (BBA) ,
Breach of Duty ,
Clawbacks ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
HDHP ,
Health Care Providers ,
Health Savings Accounts ,
Investment Adviser ,
Investment Management ,
IRS ,
MHPAEA ,
Murder ,
Plan Administrators ,
Preemption ,
Prescription Drugs ,
Retirement Plan ,
Slayer Statutes
After nearly a decade in the making, the Department of Labor’s fiduciary rule appears to be officially dead. On June 21st, the U.S. Court of Appeals for the Fifth Circuit issued its mandate that finalized its earlier...more
6/26/2018
/ Best Interest Contract Exemptions ,
Broker-Dealer ,
Conflicts of Interest ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Investment Adviser ,
Investment Management ,
New Guidance ,
Vacated
Despite the change in seasons, there appears to be no change in the pace of complex and class action ERISA litigation. Investments in defined contribution plans—both 401(k) and 403(b) plans—continue to be the leading target...more
4/11/2018
/ 401k ,
Affordable Care Act ,
Benefit Plan Sponsors ,
Bi-Partison Balanced Budget Act (BBA) ,
Books & Records ,
Breach of Duty ,
Cadillac Tax ,
Department of Labor (DOL) ,
Disability Benefits ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Executive Compensation ,
Fiduciary Duty ,
Fiduciary Rule ,
Hardship Distributions ,
Investment Adviser ,
IRS ,
Multiemployer Pension Plan Amendments Act (MPPAA) ,
Mutual Funds ,
National Association for Fixed Annuities (NAFA) ,
Retirement Plan ,
Self-Dealing ,
Standing
In a 2-1 decision, the U.S. Court of Appeals for the Fifth Circuit vacated the Department of Labor’s fiduciary rule, including the expanded definition of “investment advice fiduciary” and the associated exemptions. The...more
3/19/2018
/ Best Interest Contract Exemptions ,
Broker-Dealer ,
Department of Labor (DOL) ,
Dodd-Frank ,
Employee Retirement Income Security Act (ERISA) ,
Federal Arbitration Act ,
Fiduciary Duty ,
Fiduciary Rule ,
Financial Services Industry ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Regulatory Oversight ,
Regulatory Reform ,
Trump Administration ,
Vacated
Editor's Overview -
For over two decades, federal law has required covered health plans and insurers to ensure that certain mental health benefits are in parity with offered medical/surgical benefits. The meaning of...more
1/9/2018
/ 401k ,
Affordable Care Act ,
Attorney's Fees ,
Benefit Plan Sponsors ,
Claim Procedures ,
Compensation & Benefits ,
Cost-Sharing ,
Deferred Compensation ,
Department of Health and Human Services (HHS) ,
Department of Labor (DOL) ,
Disability ,
Disability Benefits ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Enforcement Actions ,
Fiduciary Duty ,
Health Savings Accounts ,
Healthcare Facilities ,
Healthcare Reform ,
Income Taxes ,
Individual Retirement Account (IRA) ,
Mental Health ,
Mental Health Parity Rule ,
MHPAEA ,
Public Health Service Act ,
QMAC ,
QNEC ,
Securities and Exchange Commission (SEC) ,
Sexual Harassment ,
Shared Responsibility Rule ,
Statute of Repose ,
Tax Deductions ,
Tax Reform ,
User Fees
On November 27, 2017, the Department of Labor (“DOL”) finalized the delay of the applicability date for certain conditions for exemptions to the fiduciary rule until July 1, 2019. This delay was initially proposed in late...more
11/29/2017
/ Best Interest Contract Exemptions ,
Delays ,
Department of Labor (DOL) ,
Disclosure Requirements ,
Fiduciary Duty ,
Fiduciary Rule ,
Popular ,
Retirement Plan ,
Securities and Exchange Commission (SEC) ,
Stakeholder Engagement ,
Trump Administration
Editor's Overview - As we have observed on other occasions, the ERISA class action plaintiffs' bar has, for several years now, honed in on 401(k) plan fiduciaries and their decisions to select and retain investment options...more
10/4/2017
/ 401k ,
403(b) Plans ,
AARP ,
Affordable Care Act ,
Breach of Duty ,
Class Action ,
Delays ,
Department of Labor (DOL) ,
Disability Benefits ,
Disclosure Requirements ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employer Mandates ,
Equal Employment Opportunity Commission (EEOC) ,
Excessive Fees ,
Executive Orders ,
Federal Rules of Civil Procedure ,
Fiduciary Duty ,
Fiduciary Rule ,
Form 5500 ,
GINA ,
Hardship Distributions ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Healthcare Reform ,
Hurricane Harvey ,
Individual Retirement Account (IRA) ,
Investors ,
IRS ,
Motion to Dismiss ,
OMB ,
PBGC ,
Pensions ,
Preventive Health Care ,
Principal Transaction Exemption ,
Retirement Plan ,
Self-Dealing ,
Twombly/Iqbal Pleading Standard ,
Universities ,
Wellness Programs
On August 30, 2017, the Department of Labor (“DOL”) officially proposed delaying the applicability date of exemptions to its fiduciary rule until July 1, 2019. The proposal was expected after DOL stated in a court filing...more
8/31/2017
/ Best Interest Contract Exemptions ,
Breach of Duty ,
Delays ,
Department of Labor (DOL) ,
Disclosure Requirements ,
Fiduciary Duty ,
Fiduciary Rule ,
Field Assistance Bulletins ,
Financial Services Industry ,
Individual Retirement Account (IRA) ,
IRS ,
Mitigation ,
OMB ,
Principal Transaction Exemption ,
Private Right of Action ,
Prohibited Transactions ,
Securities and Exchange Commission (SEC) ,
Trump Administration ,
Written Agreements