401(k)

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Last week, the U.S. Supreme Court ruled against Intel Corporation in, Intel Corporation Investment Policy Committee v. Sulyma, a case with potentially far reaching implications to employers who maintain Section 401(k) retirement plans.

The case involved a class action lawsuit brought by an Intel employee who claimed that Intel, Intel committees and individuals administering two Intel retirement plans had breached their fiduciary duties under ERISA, the federal law that governs such plans, by offering two investment funds that were imprudently overinvested in “alternative investments” such as hedge funds and private equity and failed to disclose relevant facts about those allocations to plan participants.  This is but one of many similar class action ERISA lawsuits brought against large employers, universities and colleges.  The Supreme Court decision focused on the time a plaintiff has to bring such a claim.  ERISA Section 413 allows a plaintiff as long as six years to file suit following an alleged ERISA breach or violation.  However, if a plaintiff has “actual knowledge” of a breach or violation, that period is reduced to three years.Continue Reading United States Supreme Court Rules in ERISA Fiduciary Case

Last week Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act as part of the legislative package of spending bills. President Trump signed the legislation on Friday to implement the first major retirement plan legislation since the Pension Protection Act of 2006. As often occurs with major Tax legislation, employers will need to quickly review the legislation as some of the provisions are effective as early as January 1, 2020.  The following are some of the important provisions in the 119 pages of legislation.
Continue Reading Congress Passes SECURE Act Making Major Changes to Retirement Plans

Last month, the United States Supreme Court ruled unanimously in Tibble v. Edison International that retirement plan fiduciaries have an ongoing duty to monitor plan investments.  The ruling came in a case involving challenges to plan investment decisions made more than six years before suit was filed. The lower courts had ruled some claims were…