In an interesting turn of events, Registered investment advisor (RIA) Creative Planning announced the purchase of Mesirow’s corporate retirement advisory services team. The acquisition signifies a strategic move by Creative Planning to strengthen its presence in the corporate retirement advisory sector, one that should not be overlooked by legal professionals invested in this field. Details…
On October 31, 2023, the U.S. Department of Labor (DOL) put forward a proposition to modify the fiduciary rule under the Employee Retirement Income Security Act (ERISA). If implemented, the new rule would broaden the definition of “investment advice fiduciary”. The reformation’s scope could significantly widen to include specific one-off recommendations, while also escalating the…
The Second Circuit, through its landmark decision in Cunningham v. Cornell University, has taken significant strides in clarifying the pleading standards for ERISA prohibited transaction claims. This conclusion came after years of courts wrestling with establishing an appropriate standard. The matter, as per the perceived legal consensus, was becoming an urgent one, given that too…
In a recent development, the U.S. Department of Labor (DOL) has put forth a series of proposals aimed at altering the definition of a “fiduciary” under the Employee Retirement Income Security Act (ERISA) and Section 4975 of the Internal Revenue Code. Read further. The DOL’s revisions, officially submitted on November 3, 2023, aim to mirror…
In the environment of complex regulations and ever-evolving landscapes, staying informed about the latest developments in healthcare and welfare plans becomes a mandate for legal professionals, particularly those working in employee benefits and executive compensation. In order to dissect and discuss these crucial topics, industry experts Lynne Wakefield and Lydia Parker have initiated a three-part…
Recently, the Eastern District of Kentucky joined the growing list of courts expressing their standpoint on arbitration and class action waiver provisions in ERISA-governed defined contribution plans. This decision came about through the case of Merrow v. Horizon Bank. In its conclusion, the court ruled in favor of the enforceability of such a provision and…
In a significant development which has stirred conversations among legal professionals, it appears that the procedures for Prohibited Transaction Exemptions (PTE) might be on the verge of a revamp. A recent publication brought attention to the possibility that final regulations, updating the rules guiding the filing and processing of applications for administrative exemptions from the…
As legal complexities surrounding operations of health plan administrators continue to unfold, a distinct scenario merits a closer examination: when the same administrator both administers a benefit plan and compensates for the benefits due under said plan. Given this dual role, courts identify these administrators as carriers of a structural conflict of interest. According to…
Philadelphia, known widely as the City of Brotherly Love or the Cradle of Liberty, is set to play host to the preeminent Life, Health, Disability & ERISA (LHD&E) conference on March 20th – 22nd. This desirable destination paves the way for an event not to be missed by legal professionals specializing in these areas of…
Forfeiture accounts have become a topic of growing interest in Employee Retirement Income Security Act (ERISA) litigation, as evidenced by a series of new cases being brought forth. In these suits, retirement plan fiduciaries are accused of breaching their fiduciary duties to plan participants. One of these recent cases includes McManus v. Clorox Co., N.D…
The U.S. Department of Labor (DOL) recently issued a new proposed rule clarifying the definition of “fiduciary” under the Employee Retirement Income Security Act (ERISA) and Section 4975 of the Internal Revenue Code. The proposal, unveiled on Tuesday, October 31, 2023, is anticipated to replace the DOL’s existing regulation pertaining to when a person qualifies…
On October 31, 2023, the US Department of Labor (DOL) released its Proposal 4.0 regarding the Employee Retirement Income Security Act (ERISA) fiduciary investment advice, following its announcement by President Biden. The Proposal includes amended exemptions for conflicted investment advice, expanding upon the concepts of Rule 2.0 that the DOL adopted in 2016. Noteworthy is…
In a significant development, the US Department of Labor (DOL) has recently issued an advisory opinion regarding measures for ensuring racial equity and supplier diversity. This DOL Advisory Opinion 2023-01A came as a response to inquiries concerning the application of the Employee Retirement Income Security Act’s (ERISA) fiduciary duty requirements to an employer’s racial equity…
On October 31, the Department of Labor (DOL) published a new proposed rule that seeks to redefine and broaden the “investment advice fiduciary” category under the auspices of the Employee Retirement Income Security Act of 1974 (ERISA). This proposed rule might bring a considerable number of financial services providers under the purview of ERISA’s obligations….
On October 31, 2023, the Department of Labor (DOL) disclosed its proposed “Retirement Security Rule”, which intends to redefine the parameters for who qualifies as an investment advice fiduciary under the Employee Retirement Income Security Act (ERISA). The fiduciary status is of crucial consideration, due to its centrality in many ERISA-related protections, liabilities, and obligations….
On October 31, 2023, the Department of Labor (DOL) issued its latest attempt at revising the rules associated with investment professionals who provide “investment advice” to employee benefit plans or plan participants deemed as a fiduciary under the Employee Retirement Income Security Act of 1974 (ERISA). This novel effort goes by the name of “Retirement…
In the final days of October, a significant development occurred in the legal landscape concerning pharmacy benefit managers (PBMs). The New York Department of Financial Services (DFS) announced new regulations to expand its oversight of PBMs. The new regulations cover assessing, licensing, and recordkeeping for PBMs, and also include revisions to existing regulations pertaining to…
The law surrounding the enforceability of arbitration provisions in benefit plans governed by the Employee Retirement Income Security Act of 1974 (ERISA) remains unsettled. Courts continue to grapple with issues related to the applicability of these provisions, particularly those containing class action waivers. This continued disagreement stems from conflicts, often in relation to the presence…
On October 31, 2023, the U.S. Department of Labor (DOL), issued a significant proposal to amend its 1975 “investment advice fiduciary” regulation. This has sparked widespread conversation among legal professionals in the corporate world, as it could potentially reshape the responsibilities of those providing fee-based investment advice. This regulation, also known as the ‘fiduciary rule,’…
The U.S. Department of Labor (DOL) has made its most recent attempt to redefine who is deemed an “investment advice fiduciary” under the Employee Retirement Income Security Act (ERISA). This latest attempt was published in the Federal Register on Friday, November 3. As noted in this detailed article by industry professionals, the DOL’s efforts to…
Plan sponsors for employers have experienced the impact and importance of the Employee Retirement Income Security Act (“ERISA”) in providing benefits to participants and beneficiaries in established plans, funds, or programs. As an integral part of this, the scheme contains an array of compliance requirements. These cover fiduciary obligations, requirements for plan documents and summary…
The Department of Labor (DOL) has proposed a fresh rule aimed at redefining what financial organisations are considered “investment advice fiduciaries” in relation to the Employee Retirement Income Security Act (ERISA). This move comes over five years after the Fifth Circuit Court of Appeals decision to vacate the DOL’s 2016 version of the same rule….
On November 3, 2023, the Department of Labor (DOL) publicized a much-anticipated proposition to its “fiduciary rule” in the Federal Register. The rule defines when an individual becomes a fiduciary to a retirement plan, subject to ERISA or an IRA. This includes their respective fiduciaries, participants, owners, and beneficiaries, collectively referred to as a “retirement…
In a case watched closely by corporate legal departments and investment managers, a Texas Federal court recently dismissed a lawsuit brought by over two dozen Republican state attorneys general against the 2022 Department of Labor (DOL) Rule. The attorneys general claimed that the rule, which dictates how retirement plan fiduciaries should incorporate ESG (Environmental, Social,…
In a recent decision that merits the attention of legal professionals handling Employee Retirement Income Security Act (ERISA) cases, a federal district court judge in the Eastern District of Kentucky took a significant stance in an Employee Stock Ownership Plan (ESOP) case. The case, Merrow et al. v. Horizon Bank et al., involves employees of…