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.
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.
17.11.2022 11.59 CST
A round of court cases following Supreme Court’s Hughes decision places a greater burden on plaintiffs bringing fiduciary litigation.
Several recent decisions handed down by federal appellate courts offer some good news for plan fiduciaries. In each of these cases the courts affirmed dismissals of fiduciary litigation, concluding that the facts alleged were just not enough to support a claim. The dismissals were based on the courts’ assessment that even if the general facts alleged were true (e.g., that other plans paid less in recordkeeping or management fees or that other funds performed better) –those facts would not show that the actions taken by the fiduciaries for these specific plans were not prudent.