Two recent cases highlight the need for plan sponsors and fiduciaries to carefully review the forfeiture provisions in their defined contribution plan documents. These cases involve Nordstrom and HP, and they underscore the importance of ensuring that plan forfeitures are handled in compliance with ERISA. Nordstrom Case Nordstrom faces allegations of
Rising Scrutiny on Health and Welfare Plan Fiduciaries: Key Legal Cases, Fiduciary Prudence, Conflicts of Interest, & Prohibited Transactions Recently, scrutiny has increased on health and welfare plan fiduciaries regarding their adherence to the Employee Retirement Income Security Act (ERISA). Three notable lawsuits—against Johnson & Johnson, Charlotte-Mecklenburg Hospital Authority, and Wells Fargo—highlight different
On September 6, 2024, the Department of Labor (DOL) updated its cybersecurity guidance for employers, plan sponsors, fiduciaries, and recordkeepers. The updated guidance includes the following tips: Beyond comparing security standards, practices, policies, and audit results to industry standards, seek service providers who employ an independent third-party auditor to review and validate their
Rising Scrutiny on Health and Welfare Plan Fiduciaries: Key Legal Cases and Best Practices In recent years, there has been a notable increase in lawsuits targeting health and welfare plan fiduciaries, reflecting a heightened scrutiny on the decisions made by these fiduciaries. The year 2024 has already seen two significant cases that highlight this
EBSA Restores over $1.4 Billion to Employee Benefit Plans, Participants & Beneficiaries in 2023. The Employee Benefits Security Administration (EBSA) is the federal agency within the US Department of Labor tasked with enforcing the rules and regulations set forth by the Employee Retirement Income Security Act of 1974 (ERISA). In FY 2023, the
We recently came across two articles about a critical issue for ERISA fiduciaries. The recent ruling by SCOTUS is a game-changer for 401(k) and 403(b) retirement plans. We consider both of these articles “must reads”! The links are below. To keep up with important national ERISA news follow us on
ERISA Insider Vol II., Ed XII: Cincinnati Businessman Ordered To Prison After Investigation By EBSA Ron Craig Estes, sole owner of R&R Steel LLC was sentenced to serve 18 months in prison for defrauding workers of retirement benefits. Dear Fiduciary, Today we are here with Breaking News out of EBSA: A federal judge
ERISA Insider Vol II., Ed. XI: How To Choose Service Providers For Your ERISA Plan Remember these rules, procedures and potential pitfalls when selecting service providers for your plan. Dear Employer, As a plan fiduciary, one of your top priorities is selecting the right service providers for your organization’s health or retirement plan.
ERISA Insider Vol II., Ed. X: EBSA Recovers More Than $2.4 Billion Dollars In 2021 This years numbers are in — the EBSA closed 69% of its 1,072 civil cases with monetary results, and 52% if its 208 criminal investigations resulted in indictments or convictions. Each year The Department of Labor (DOL) publishes
ERISA Insider Vol II., Ed. IX: What is a Fiduciary Under ERISA? Understanding who is a fiduciary is the first step to keeping your plan ERISA compliant. Dear Employer, The term ‘fiduciary’ has different meanings in different business contexts. When it comes to ERISA Health & Welfare or Qualified Retirement Plans, knowing who