Human Resources Administrator found guilty in 401(k) Lawsuit!

In Tibble vs Edison International, a long-running case that ended up at the supreme court, The Human Resources VP was found guilty.  The case involved improper selection of funds – by using retail funds instead of the available institutional funds, which costs the plaintiffs $7,000,000.  Additionally, they used the retail fees to offset management fees charged by their record keeper. …

Small Businesses overpay for 401k plans

This article was published in MarketsInsider on 12/13/17.  Click Here for the full article. “America’s Best 401k took a closer look at the asset-based fees paid by small business owners and their employees and found that many overpay for their 401(k) plans… The industry has reported (on page 50 at the link here) a median cost for plans with 100 participants or more, …

NYU Participants File Second Excessive Fee Complaint

From Plan Sponsor Compliance Section 11/20/17.  For the full article, click here.   Participants in the New York University and related plans are making a second attempt to sue fiduciaries for excessive fees. After a federal district court judge found most claims in an earlier complaint were not plausibly alleged by the plaintiffs, they filed a second complaint in the U.S. District Court for …

Would your 401k plan survive the suit against Nordstrom?

The suit, which also names the Nordstrom 401(k) Plan Retirement Committee as being in breach of its fiduciary duty, says that while most large retirement plans have been whittling away at plan and administrative fees, Nordstrom’s “administrative fees increased by 30% from 2011 to 2016,” according to the complaint. Nordstrom “failed to adequately and prudently manage the plan,” the complaint …

Retirement Plan Trustee? Read this!

SUMMARY-  Duke University may be liable:  they used multiple administrators, raising costs.  They had 400 investment options, limiting their ability to lower costs.  The Prudent Man rule comes into play again, and they failed to replace historically poor performing investments. – Reeve While several claims were dismissed, several were allowed to move forward.