Employee Benefits Blog

More is Not Always Better: Supreme Court Reexamines Fiduciary Duty of Prudence

In what may be one of the shortest decisions this term, the Supreme Court handed down a unanimous six-page opinion on January 24, 2022 in Hughes v. Northwestern University.  Vacating the Seventh Circuit’s decision, the Court further defined an ERISA plan fiduciary’s duty of prudence with respect to its control and management of retirement plan […]

January 27, 2022 | 3 min read | Tagged: duty, ERISA, fiduciary, fiduciary duty, hughes, northwestern, SCOTUS, Supreme Court

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Zachary Schroeder Associate

With a New Administration, Will the Department of Labor’s Fiduciary Rule Once Again be Revised?

The Department of Labor’s (the “DOL”) attempts to regulate the conduct of fiduciaries under ERISA and the Code has been mired in controversy.  In 2010, the Obama administration’s DOL proposed a fiduciary regulation that was met with so much criticism that it was subsequently withdrawn in 2011.  In 2015, the DOL re-proposed a fiduciary regulation […]

November 20, 2020 | 5 min read | Tagged: DOL, ERISA, fiduciary duty, financial institutions, iras, plan investments

AM

Anne M. Meyer Partner

U.S. Supreme Court to Decide Standing Question on ERISA Pension Lawsuits

The U.S. Supreme Court is mulling over whether retirement plan participants must demonstrate individual or imminent risk of financial loss before seeking a breach of fiduciary duty action under the Employee Retirement Income Security Act of 1974 (“ERISA”).  On January 13, 2020, the U.S. Supreme Court heard oral arguments in the matter of Thole v. […]

March 9, 2020 | 2 min read | Tagged: diversify, fiduciary duty, overfunding, pension plan, standing, Supreme Court, thole, us bank

RJ

Russell M. Johnson Former Associate

Dealing with Long-Winded Out-of-Network Provider Nuisance Letters

Over the past couple years, more and more of my clients with self-funded plans have received letters from out-of-network providers appealing denied claims.  The letters are usually 20 to 30 pages long, not very specific, and make various accusations against the plan and its fiduciaries.  Most of the letters follow a standard approach.  They start […]

October 11, 2016 | 4 min read | Tagged: anti-assignment, due diligence, ERISA, fiduciary, fiduciary duty, out of network, out of network provider, provider

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Nancy K. Campbell Of Counsel

Supreme Court Confirms that Plan Fiduciaries have a “Continuing Duty of Some Kind” to Monitor Investments

In Tibble v. Edison International, Justice Breyer held, for a unanimous Supreme Court, that “a fiduciary normally has a continuing duty of some kind to monitor investments and remove imprudent ones.” In so ruling, the Court reversed a decision from the Ninth Circuit, which held, in essence, that plan fiduciaries could not be held responsible […]

May 19, 2015 | 3 min read | Tagged: 401(k) plan, duty to monitor, fiduciary duty, plan investments, Supreme Court, Tibble v. Edison International

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Tom Hoecker Of Counsel

401(k) Plan Fiduciaries – Have you thought about your continued offering of the PIMCO Total Return Fund?

The abrupt departure of Bill Gross from PIMCO leaves many investors pondering their next move.  Should an investor stay the course and see how PIMCO’s new investment team performs?  Should an investor leave and follow Mr. Gross to Janus Funds?  Should an investor rush to find a new bond fund manager? These questions are particularly important […]

September 30, 2014 | 2 min read | Tagged: 401k) plans, Bill Gross, fiduciary, fiduciary duty, fiduciary standards, PIMCO, prudent person standard, qualified retirement plans

TH

Tom Hoecker Of Counsel

Supreme Court Decision Changes Standards for Employer Stock in Retirement Plans

The Supreme Court recently decided a case that eliminates the “presumption of prudence” for plan fiduciaries relating to their investment in employer stock in retirement plans.  In Fifth Third Bancorp v. Dudenhoeffer, the Supreme Court determined that fiduciaries of an employee stock ownership plan (“ESOP”) are not entitled to a presumption of prudence.  Rather, the […]

July 15, 2014 | 2 min read | Tagged: Dudenhoeffer, employee stock ownership plan, employer stock, ESOP, fiduciary duty, presumption of prudence, Supreme Court

AM

Anne M. Meyer Partner

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Tom Hoecker Of Counsel