Uncategorized Archives - Allen Steinberg

ryanne

09.09.2025 10.28 CDT

SEC penalizes Empower and Vanguard for inadequate managed account disclosures

Empower and Vanguard Penalized for Undisclosed Conflicts

On August 29, the SEC issued orders against units of Empower and Vanguard for inadequate and misleading disclosure regarding the firms’ conflicts of interest in promoting their managed account products.

conflicts of interest Disclosure SEC

The SEC has issued orders against Empower and Vanguard for inadequate and misleading disclosure regarding the sales of the firms’ managed account products.

ryanne

22.08.2025 09.32 CDT

The President directs DOL to reconsider its position on alternative assets in DC plans.

Doors to Swing Open for Alternative Investments

The President directs DOL to reconsider its position on alternative assets in DC plans.

Fiduciary Responsibility investments

Private equity and crypto investments may soon be coming to a plan near you.

ryanne

29.04.2025 09.40 CDT

The Supreme Court interprets ERISA to allow fiduciary claims to proceed based solely on allegations that a transaction occurs between a plan and a party in interest for goods or services, and places the burden on plan fiduciaries to prove that the fees paid are reasonable.

Tide of ERISA Litigation to Continue

A new Supreme Court ruling may further open the door to ERISA fiduciary claims.

Fiduciary prohibited transaction Supreme Court

Supreme Court decision simplifies allegations needed for plaintiffs’ claims of fiduciary misconduct to proceed.

erisachicago

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.

Fiduciary Forfeiture Litigation

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.

erisachicago

12.01.2024 02.55 CST

IRS Guidance on recent legislation helps employers start planning for next few years.

SECURE Act Provisions Start Taking Shape

As we enter 2024, employers (and their providers) are starting to get more IRS guidance on recent pension legislation.

Legislation SECURE 2.0 SECURE Act

The IRS ended 2023 with new guidance on the SECURE Act and SECURE 2.0. These included proposed regulations on the new requirements for long-term part-time employees and a grab-bag of Q&As on miscellaneous provisions of SECURE 2.0. Overall, the IRS guidance does not contain dramatic surprises—but it does help employers and their providers start planning for the next few years.