The Eleventh Circuit Court of Appeals recently affirmed a district court’s grant of summary judgment in favor of the fiduciaries of the Home Depot 401(k) plan, who defended against claims that they breached their fiduciary duties by permitting the plan to pay excessive financial advisor fees and retaining underperforming investments. In so ruling, the court
Retirement Plan
Fifth Circuit Reverses Dismissal of 401(k) Fees Claims
By Daniel Wesson, Joseph Clark & Myron Rumeld on
The Fifth Circuit recently reversed a district court’s dismissal of claims that the fiduciaries of a 401(k) plan breached the duty of prudence under ERISA by offering participants retail share classes instead of cheaper institutional share classes, and causing the plan to pay allegedly excessive recordkeeping fees. The decision is notable for articulating the level…
California District Court Denies Motion to Dismiss 401(k) Excessive Fee and Underperformance Claims
By Daniel Wesson & Joseph Clark on
A California district court recently denied a motion to dismiss claims that the fiduciaries of a 401(k) plan breached their ERISA fiduciary duties of prudence and loyalty by selecting underperforming, high-cost investments and causing the plan to pay excessive fees for services. The decision is notable for illustrating how pleading standards in investment performance and…
Act Fast (If You Get the Letter)! IRS Pre-Examination Retirement Compliance Pilot Program is Extended
By Katrina McCann on
On February 7, 2024, the IRS announced the second phase of its Pre-Examination Retirement Compliance Program (we discussed phase one in our earlier post here). Under this program, sponsors will be notified that their plan is selected for examination and will have 90 days to review and correct any plan document or operational errors…