To give you the best possible experience, this site uses cookies. If you continue browsing, you accept our use of cookies. You can view our privacy policy to find out more about the cookies we use.

Accept
X

Fiduciary issues

Fourth Circuit allows legacy stock claim to proceed

On August 11, 2020, the United States Court of Appeals for the Fourth Circuit handed down its decision in Stegemann v. Gannett, ruling (in a 2-1 holding) that plaintiffs could proceed with their claim that a legacy stock fund in the Gannett 401(k) plan violated ERISA’s fiduciary prudence and diversification requirements.

DOL proposes new rules on proxy voting

On August 31, 2020, the Department of Labor released a proposed regulation revising DOL’s rules for the voting (or not voting) of proxies by ERISA plan fiduciaries. The new rule requires that fiduciaries apply an economic cost-benefit analysis to decisions about whether or how to vote proxies and/or engage in shareholder activism that is explicitly stricter than current rules.

Annuity Purchase Update: August 2020 Interest Rates

Pension plans have experienced unprecedented volatility in 2020. While the market volatility has caused the treasury rates to fall dramatically, the spread between treasury bonds and the bonds insurance companies invest in have widened. The widening of this spread would typically tell us that now would be a good time for pension plans to purchase annuities.

Annuity Purchase Update: July 2020 Interest Rates

Pension plans have experienced unprecedented volatility in 2020. While the market volatility has caused the treasury rates to fall dramatically, the spread between treasury bonds and the bonds insurance companies invest in have widened. The widening of this spread would typically tell us that now would be a good time for pension plans to purchase annuities.

DOL releases proposed fiduciary advice Prohibited Transaction Exemption

The proposed PTE would condition relief on the fiduciary providing advice in accordance with “Impartial Conduct Standards” and requires that affected financial institutions and investment professionals acknowledge their fiduciary status and describe (in writing) the services they offer and material conflicts of interest.

DOL releases proposed regulation on ESG investments

On June 24, 2020, the Department of Labor released a proposed amendment to regulations under ERISA section 404(a) (which describes general fiduciary standards), providing regulatory guidance with respect to fiduciary decisions to invest plan assets based on environmental, social, and corporate governance (ESG) factors or in ESG-themed funds.

Annuity Purchase Update: June 2020 Interest Rates

Pension plans have experienced unprecedented volatility in 2020. While the market volatility has caused the treasury rates to fall dramatically, the spread between treasury bonds and the bonds insurance companies invest in have widened. The widening of this spread would typically tell us that now would be a good time for pension plans to purchase annuities.