28.01.2025 01.57 CST
A federal court in Texas has ruled that American Airlines breached its duty of loyalty under ERISA by failing to respond to activities undertaken by a plan investment manager (BlackRock) supporting ESG initiatives. The court was unable to find a breach of prudence—rather it relied solely on the obligation of “loyalty.”
Spence v. American Airlines: Expanding the Playing Field for Fiduciary Liability?
A new ruling of fiduciary liability could cause fiduciaries to further examine firewalls between corporate policy and retirement plan management.
Federal court seeks to make ESG initiatives (even) riskier.
06.01.2025 12.00 CST
Some trends that might affect retirement plans under Trump 2.0.
The incoming administration has not articulated a benefits agenda. However, there are certain trends we can anticipate over the next few years.
10.09.2024 01.44 CDT
Two cases reach opposite conclusions on whether employers must use forfeitures to play plan expenses—and are (effectively) precluded from using them to reduce employer contributions.
New Front on Fiduciary Litigation?
Two cases reach opposite conclusions on whether employers must use forfeitures to play plan expenses—and are (effectively) precluded from using them to reduce employer contributions.
In two recent court decisions (Hutchins v. HP Inc and Perez-Cruet v. Qualcomm Inc) plaintiffs claimed that employers’ decision to use forfeitures to reduce employer contributions (and not to pay for plan administrative expenses) was a breach of ERISA fiduciary responsibility. The courts reached opposite conclusions in these cases—with one court (Hutchins) dismissing the complaint and the other (Perez-Cruet) denying the motion to dismiss and allowing the case to proceed.
26.08.2024 09.07 CDT
New lawsuit makes serious allegations that TIAA stacked the deck to enhance profitability
New Lawsuit Targets TIAA and Morningstar
New lawsuit makes serious allegations that TIAA stacked the deck to enhance profitability
A new fiduciary case alleges that TIAA and Morningstar colluded to alter asset allocation tools to promote certain TIAA annuities. The case is directed at TIAA and Morningstar, rather than at plan sponsors—and could create liability for TIAA and Morningstar for both ERISA and non-ERISA plans. The complaint rehashes some old criticism of TIAA—but also contains some significant new accusations. If this case succeeds, it could have some far-reaching implications.
12.07.2023 03.47 CDT
Yale takes fiduciary case to trial—and prevails
The jury found that Yale breached fiduciary duties and cause plan to pay excessive fees; at the same time the jury found that a fiduciary following a prudent process could have made the same decisions and awarded $0 in damages.