02.03.2021 03.16 CST
Plaintiffs’ must use truly comparable benchmarks in claiming imprudent fiduciary decisions.
Fiduciary Litigation Update
New court rulings may benefit employers.
A recent court case provides some potentially valuable guidance into ways plan fiduciaries can approach fiduciary litigation. Most importantly, the case could force plaintiffs to focus on truly comparable situations in alleging that a plan’s actions were imprudent--this would limit plaintiffs’ ability to use, as benchmarks of prudent behavior, general industry data or different categories of investments (such as comparing index funds to actively managed funds).
25.01.2019 06.47 CST
Notice 2018-95 offers relief to employers who have failed to properly administer the “once-in-always-in” rule for 403(b) plans. However, the Notice also serves as a reminder for potential plan design opportunities.
IRS Offers Relief for Certain 403(b) Eligibility Failures
Section 403(b) plans operate much like their cousins, 401(k) plans. But, there are some key differences.
Notice 2018-95, issued by the IRs in December, provides very specific and targeted relief for retirement plans under Code Section 403(b). who failed to properly administer certain 403(b) eligibility rules. However, equally valuable to 403(b) sponsors, is the clarification contained in the Notice on how these eligibility rules are supposed to be administered.