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Is It Time to Terminate Your Defined Benefit Plan?

October 14, 2016 | Category: Fees & Expenses | Posted by Doug Prince

Defined Benefit Plan Termination Are you considering freezing or terminating your Defined Benefit (DB) retirement plan? Many retirement plan sponsors have already, or plan to in the near future. From 1980 through 2008, the proportion of private wage and salary workers participating in DB pension plans fell from 38 percent to 20 percent. For most […]

Fee Litigation Comes to 403(b) Plans

August 15, 2016 | Category: Fees & Expenses | Posted by Doug Prince

Excessive Fee Litigation hits Higher Education 403(b) Plans Get ready 403(b) retirement plan sponsors, the fee and expense litigation that has gone through your for-profit brethren is now coming to the not-for-profit world. Massachusetts Institute of Technology, Yale, and New York University (NYU) all have a lawsuit filed against them on Tuesday, August 9, 2016 […]

DOL Audits Restore Millions

June 9, 2016 | Category: Fees & Expenses, Governance | Posted by Ashley Naab

Millions Restored Towards Plan Participant Balances The Department of Labor released how much money they were able to restore for ERISA plan participants. The DOL Employee Benefits Security Administration (EBSA) collected $696 million in the 2015 fiscal year to restore participant balances. With $8.7 trillion in plan assets (including retirement health and other welfare benefit […]

Lessons for Retirement Plans with Company Stock

May 3, 2016 | Category: Fees & Expenses | Posted by Doug Prince

Dudenhoeffer v. Fifth Third Bancorp If you have company stock as an investment option in your company sponsored retirement plan, you have probably heard of the Dudenhoeffer v. Fifth Third Bancorp Supreme Court decision. The Fifth Third Bancorp Employee Sponsored Ownership Plan (ESOP) contributed company stock to employees’ retirement accounts as a match to their […]

What Employers can learn from the Anthem 401(k) Lawsuit

January 8, 2016 | Category: Documentation, Fees & Expenses, Governance, Plan Design | Posted by Doug Prince

The 401(k) lawsuits against large companies comes to Indiana. According to Groom Law Group, since 2007, there have been nearly 40 lawsuits about fees and expenses paid by employees in 401(k) plans.  Law firm Schlichter, Bogard & Denton, LLP has been the lead plaintiffs’ counsel for many of these suits.  On December 29, 2015, Anthem […]

The Largest 401(k) Lawsuit Settlement

December 16, 2015 | Category: Fees & Expenses | Posted by Doug Prince

On February 20, 2015, Lockheed Martin settled a long-standing 401(k) lawsuit for approximately $62 million, the largest settlement to date of a suit of this kind. Of this amount, the Planitiff’s counsel will receive up to $20,666,666 plus another $1,850,000 for expenses. Roughly $39,500,000 (after attorney fees and expenses) will be allocated to participants with […]

Index Funds in Retirement Plans

December 1, 2015 | Category: Fees & Expenses | Posted by Doug Prince

I just read an article that suggested that a large number of retirement plans have replaced their actively managed funds with index funds for the following reasons: Better Fiduciary Compliance Less Litigation Risk No More Bad Performing Funds The End of Fund Changes Before I comment, let me give a little perspective, almost all (if […]

The Advantages of Adopting a Fee Policy Statement

November 11, 2015 | Category: Documentation, Fees & Expenses, Governance | Posted by Chase Sanders

Like an investment policy statement (IPS), a fee policy statement is designed to lay out guidelines for the plan sponsor to manage and document plan expenses. Also like an investment policy statements, fee policy statements are not required, however we believe it is a best practice and strongly encourage all of our clients to have […]

Reducing Your 401(k) Fund Expenses

March 30, 2015 | Category: Fees & Expenses | Posted by Doug Prince

According to The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2013 study conducted by the Investment Company Institute (ICI), the expense ratios that 401(k) plan participants incur for investing in mutual funds has declined from 0.77% in 2000 to 0.58% in 2013. Even though averages have lowered, we still see prospective clients that have […]

Tips for Conducting an Annual Financial Review

March 17, 2015 | Category: Fees & Expenses | Posted by Jeff Prince

Tax season is around the corner. Calendar year corporations and partnerships tax returns are due March 15th Individual returns are due on April 15th As you are closing out your financial statements or digging for documents for your personal return, it is a good idea to review fees in your company’s retirement plan along with […]