News & Analysis as of

No fear of a class action lawsuit doesn’t mean there shouldn’t be fear

Plan sponsors will say it all the time: they are too small to be sued in a class action lawsuit. That may be true, but a class action lawsuit isn’t the only thing to fear. Most plans aren’t big enough to have a class action...more

The Rosenbaum Law Firm Review - September 2015 #2

What Plan Sponsors Don't Know, May Hurt Them. And they don't know a lot. When I worked at a semi-prestigious lawfirm, one of the named partners (whose son was a respectable politician) asked me what my practice...more

Changes In The Money Market Fund Rules: The Fiduciary Response

The SEC’s modifications to the money market fund rules won’t become effective for approximately a year, but plan fiduciaries should already be considering what to do about them.2 Almost certainly, they’ll need to make changes...more

Investing Wisely: Employers Need to Monitor 401(k) Plan Fees

Costly lawsuits filed by employees against their employers come in several varieties, including lawsuits alleging liability because of an employer’s handling of its employee benefit plans. Earlier this year, the U.S. Supreme...more

Looking Beyond the 401(k) for Advisors

Too often brokers and financial advisors think about their client’s retirement plan needs and only think about the 401(k) plan. It’s understandable based on their lack of understanding retirement plan basics, but it’s not...more

The Rosenbaum Law Firm Review - September 2015

The Essential Plan Providers For A 401(k) Plan. The Plan Providers you need. When people are sick, especially debilitating illnesses or diseases, it's natural for them to travel far and wide to get the best medical...more

A Statistic is meaningless if you’re bad at it

There was a law school in Southern California that has a bar passage rate of 7%, which means 93% of their graduates failed the test. They sued the California Bar on free speech grounds because they didn’t want to be forced to...more

DOL Hearings Debate “Fiduciary Duty” not “Suitability” Standard for Retirement Accounts

The U.S. Department of Labor (“DOL“) recently heard public comment to its proposed regulatory changes implementing a fiduciary duty on any individual receiving compensation for advice tailored to a plan sponsor, participant...more

The Rosenbaum Law Firm Review - August 2015

Good Bets by a 401(k) Plan Sponsor to Avoid Liability. As close to a sure thing you'll get. I don't gamble because I don't like to lose and that's a big problem about gambling because people do lose. I stopped playing...more

The Top 7 Concerns for Employee Benefits Administrators

For years, employers have been getting a free pass from the courts for a number of different violations of the Employee Retirement Income Security Act of 1974 ("ERISA") relating to the operation of retirement, medical,...more

Employee Benefits Developments - June 2015

Supreme Court: Plan Fiduciaries Have a Continuing Duty to Monitor Plan Investments. In 2007, participants and beneficiaries under a 401(k) plan sued the plan fiduciaries and the plan sponsor to recover damages for alleged...more

United State Supreme Court Confirms ERISA Fiduciary’s Continuing Duty To Monitor Investments

In its Tibble v. Edison International decision the United State Supreme Court confirmed that the scope of an ERISA fiduciary’s duty of prudence continues after initial investments are made and imposes an ongoing duty to...more

Advisors Advantage - July 2015

In This Issue: - How Retirement Plan Advisors Can Benefit From Any New DOL Fiduciary Rule - Avoid Other Providers Who Are The Sticks in the Wheels of Progress - Sometimes It's Just Words - Never...more

U.S. Supreme Court Says “Regular Review” of ERISA Investments Required

ERISA plan fiduciaries charged with responsibility for selecting, monitoring or removing plan investment options should pay close attention to the U.S. Supreme Court’s recent ruling in Tibble v. Edison Intl., 135 S. Ct. 1823...more

Sometimes it’s just words

So much of any industry is dedicated to marketing, because marketing can help a company sell a product or service just based on how it’s marketed. Whoever sold the pet rock is still probably laughing all the way to the...more

Avoid Other Providers Who Are The Sticks in The Wheels of Progress

I had a friend of mine in college who was involved in student politics like I was and he once proclaimed to the school newspaper that he was “the stick in the wheels of corruption.” 20 years later, I have used that line many...more

Fiduciary Risks Involved in Transferring Assets from a Seller’s 401(k) Plan to the Buyer’s Plan

In many transactions, particularly those where the buyer is a portfolio company of a private equity fund, the buyer agrees to cause its 401(k) plan to accept a transfer of assets from the seller’s 401(k) plan. The asset...more

U.S. Department of Labor Re-Proposes Rules Governing the Definition of “Fiduciary”—Part 4: The Impact on 401(k) Plan Consultants...

This post highlights the significant impact the proposed regulations may have on advisers to mid-sized and small 401(k) retirement plans if adopted. Previously, Part 1, Part 2 and Part 3 of this series described the...more

Yes Virginia, There is a Duty to Monitor Retirement Plan Investments

In a recent unanimous ruling the U.S. Supreme Court confirmed what most retirement plan professionals already knew: ERISA requires plan investment fiduciaries to monitor investments and remove imprudent ones. Surprisingly to...more

Concerns Mount over Department of Labor’s Proposed Fiduciary Rule

The Department of Labor (“DOL”) released a controversial proposed rule on April 20, 2015, that seeks to expand fiduciary duties in the context of retirement-investment advice. Specifically, the proposed rule would rework a...more

Tibble v. Edison International Decision Finds Ongoing Duty to Monitor Investments in 401(k) Plans

The Supreme Court holds that ERISA’s limitations period does not bar an alleged breach for failure to monitor a plan’s investments. Background - On May 18, the Supreme Court issued a unanimous decision in Tibble v....more

Supreme Court Rules on Plan Fiduciaries Duty to Monitor Plan Investments

In a unanimous decision, the U.S. Supreme Court held on Monday, May 18, 2015, that a plan trustee has a continuing duty to adequately monitor plan investments and remove imprudent ones. Tibble v. Edison, Int’l, 2015 BL...more

Supreme Court Ruling Heightens Pressure on Fiduciaries to Monitor 401(k) Plan Investments

On May 18th, the U.S. Supreme Court unanimously held in Tibble et al. v. Edison International et al., No. 13-550 (S. Ct. May 18, 2015) that ordinary principles of trust law impose on ERISA fiduciaries a duty to continually...more

401(k) Fee Litigation to Increase Following Tibble Decision

As a result of the U.S. Supreme Court’s decision in Tibble v. Edison Int'l, it will now be easier for participants in 401(k) and other participant-directed plans to bring lawsuits challenging investment options added to the...more

Locke Lord QuickStudy: The Supreme Court Opines In Tibble v. Edison That The Duty to Monitor Investments Is Ongoing

In a highly anticipated decision, the United States Supreme Court recently held that a 401(k) fiduciary breach lawsuit may proceed even when the claim is based on an imprudent selection of investment funds that occurred more...more

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