Posts Categorized: Fiduciary Issues

Plan Sponsor Forced to Restore Plan Benefits Due to Intentionally Misleading Communications to Employees

in Fiduciary Issues, Qualified Plans, Retirement Plans

On September 29, 2015, the U.S. District Court for the Southern District of New York issued a decision that emphasizes the importance of accurate communications to employees regarding changes in qualified retirement plan benefits. In Osberg v. Foot Locker, Inc., the plaintiffs in the class action consisted of nearly 16,000 participants in a defined benefit pension plan sponsored by Foot Locker. Prior to 1996, Foot Locker sponsored a traditional defined benefit pension plan in which benefits were defined as an annual life annuity commencing at age 65. Like most traditional defined benefit pension plans, the plan also provided early retirement… Continue Reading

President Announces Plan to Expand Fiduciary Rules Applicable to Investment Advisers

in Fiduciary Issues, Retirement Plans

On Monday February 23, 2015, President Obama announced plans for the Department of Labor (DOL) to re-propose rules in the coming months to expand the definition of fiduciary investment advice under ERISA. These rules are intended to crack down on what the President characterizes as “back door payments or hidden fees” that lead to conflicted advice from investment advisers to retirement plan clients. The forthcoming rules will also hold investment advisers to a fiduciary standard, meaning they would be required to put their clients’ interests ahead of their own. The current definition of a fiduciary under ERISA dates back to… Continue Reading