News & Analysis as of

Benefit Plan Sponsors 401k Mutual Funds

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Putnam adds ESG Target Date Funds to their lineup

With the new Department of Labor (DOL) rules on ESG funds, it should be no shock that mutual fund companies starting mutual fund offerings for 401(k) fund lineups. Putnam has launched the Putnam Sustainable Retirement Funds...more

Proskauer - Employee Benefits & Executive...

Industry Coalition Unites to Support Dismissal of ERISA Fiduciary-Breach Claims Related To BlackRock Target Date Funds

The filing of a new 401(k) plan “excessive fee” or “investment underperformance” complaint is hardly “news” these days given the proliferation of suits that have been filed over the past several years. In fact, hardly a week...more

Holland & Knight LLP

Low-Cost Index Funds in the Crosshairs of New 401(k) Lawsuits

Holland & Knight LLP on

Since late July, at least 10 lawsuits have been filed against large 401(k) plan sponsors that offer certain BlackRock Inc. target-date funds (TDF) among their investment options. In an unexpected pivot away from the 401(k)...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

John Hancock forks over $14 million in 401(k) lawsuit

When you operate proprietary mutual funds and offer them in your401(k) plan, you will be a target of ERISA litigators. John Hancock agreed to a $14 million settlement in a lawsuit filed by participants in a company 401(k)...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

One Fund Family Lineups are a bad idea

You must know about the shoemakers’ children and how they go barefoot and have no shoes. In the retirement plan industry, we have retirement plan providers and their employees’ retirement plans....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Hire an advisor when you get an employee

I’m still amazed when I find participant-directed 401(k) plans without a financial advisor. While I understand how solo 401(k) plans don’t have an advisor because individuals think they can do it on their own, it makes no...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Yesterday’s funds in today’s lineups

If you ever want to know what the top mutual funds were 3-5 years ago, you can look at the mutual fund lineup of many 401(k) plans today. ...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

It’s a Process and Not A Result

Advisors ask me all the time of the role of education in participant-directed 401(k) plans. Participant directed 401(k) plans that are governed under ERISA §404(c) offer the plan sponsors liability protection based on a...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

One Mutual Fund Lineup isn’t a good idea

You must know about the shoemakers’ children and how they go barefoot and have no shoes. In the retirement plan industry, we have retirement plan providers and their employees’ retirement plans....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Mutual of Omaha settles lawsuit

Mutual of Omaha Insurance Co. and its subsidiary United of Omaha has agreed to settle Mutual of Omaha’s 401(k) plan over allegations of self-dealing....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Too much choice isn’t a good thing

In life, giving people a wide variety of choices is a good thing. However, when it comes to daily valued 401(k) plans, too many choices isn’t a good thing. It sounds counter-intuitive, but too many choices offered to plan...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Proprietary fund plan sponsor problems

I always say that I come up with many ideas, but most of them are bad. Seriously, there are so many bad ideas out there in the 401(k) space and one of the really bad ideas out there are bundled plan providers using their own,...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

JP Morgan ponies up $9 million

A settlement has been in a lawsuit accusing fiduciaries of the JPMorgan Chase 401(k) Savings Plan of self-dealing. Records show that a settlement of $9 million will be made to “fully, finally and forever resolve, discharge...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

You need a financial advisor

I am still how often I find participant-directed 401(k) plans without a financial advisor. While I understand how solo 401(k) plans don’t have an advisor because individuals think they can do it on their own. I have a solo...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

M&T Settlement shows the problem of using proprietary funds

Plan sponsors with their proprietary funds have a unique problem. Using proprietary funds will lead to litigation and not using them, makes them look bad in the eyes of competitors. A 401(k) plan sponsor not using their funds...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Lawsuits against Fidelity piling on

With Fidelity being under fire for “shelf space payments” from mutual fund companies to appear on their platform, it’s not surprising that ERISA litigators smell blood in the water like the sharks people think they are....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Courts these days want to see something more

The 9th Circuit upheld the dismissal of a complaint by participants in the Walt Disney Co. 401(k) plan that Disney violated their fiduciary duty by offering the Sequoia Fund, a mutual fund that had plummeted in value....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Choice in 401(k) Plans isn’t exactly a great thing

In life, giving people a wide variety of choices is a good thing. However, when it comes to daily valued 401(k) plans, too many choices isn’t a good thing. It sounds counter-intuitive, but too many choices offered to plan...more

Proskauer Rose LLP

ERISA Newsletter - First Quarter 2018

Proskauer Rose LLP on

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

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Advisors Advantage - November 2017

The Bottom Line For Retirement Plan Providers. More plan assets for your clients is a good thing for many reasons. When I had the idea of starting a National ERISA practice 10 years ago, I knew I would have a tough time...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Using Funds From Only One Family Is An Awful Idea

You must know about the shoemakers’ children and how they go barefoot and have no shoes. In the retirement plan industry, we have retirement plan providers and their employees’ retirement plan....more

Burns & Levinson LLP

Can Financial Institutions Use In-House Funds for Their Own Retirement Plans?

Burns & Levinson LLP on

Financial institutions that sell mutual funds to the public often maintain 401(k) and other retirement plans for their own employees. In these plans, many financial institutions make their own mutual funds available to...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The real reason why bad funds are in 401(k) plans

Researchers once looked at some data to try to figure out why many poor 401(k) investment choices linger on fund lineups. The researchers identified one fairly clear explanation: a sub-par fund is much more likely to stay on...more

Franczek P.C.

SEC Guidance Signals Approval for “Unbundled” Pricing for Mutual Funds

Franczek P.C. on

A recent ruling by the Securities and Exchange Commission (SEC) indicates approval for mutual funds to be sold without servicing costs already built into the cost of the fund. In other words, the SEC ruling states that...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Revenue sharing costs money

I guess my comments regarding revenue sharing is a bit sarcastic, but I think accurate. While revenue sharing payments from mutual funds to TPA to help defray the costs of administration of a plan sponsor’s plan is legal, it...more

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