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Browsing Defined Contribution

Annuity Purchase Update – January 2021

Despite the persistence of the pandemic, it is clear that the outlook for plan sponsors in 2021 is remaining positive. Generally, plan funding statuses in 2021 have improved and annuity purchase prices have declined.

2021 Retirement Policy – A Year In Review

Throughout the year, we have followed the performance of the interest rate and securities markets, tracking their effect on retirement finance. As of mid-December, interest rates are up 30-40 basis points for plans with typical duration, and the S&P 500 is up 25% on the year.

401(k) Fiduciary Litigation – “Underperformance” – Current Issues

Among other issues, Linkedin involves a claim that Linkedin plan fiduciaries breached their duty of prudence by selecting/retaining an “underperforming” target date fund. This sort of claim is being brought more frequently by plaintiffs’ lawyers in 401(k) breach-of-duty-of-prudence litigation.

Retirement Policy Update – November 2021

President Biden signed into law the Infrastructure Investment and Jobs Act (IIJA). The new legislation (among many other things) extends 25-year average interest rate stabilization relief under ERISA’s DB plan minimum funding rules another five years.

Retirement income, inflation, and retirement finance

The Consumer Price Index (CPI) has steadily risen throughout the year, with prices in September 2021 5.4% higher than the beginning of the year. This represents, fundamentally, a reduction in the buying power of a (nominal) dollar since the beginning of the year. How does this affect retirees and those saving for retirement? The effect…Read More

DOL proposes new ESG and proxy voting regulation – would significantly change rules adopted by the Trump DOL at the end of 2020

On October 13, 2021, the Department of Labor released a proposed regulation on “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” (environmental, social, or governance (ESG) investing and proxy voting), proposing to significantly revise the position taken by the Trump DOL at the end of 2020 on these issues. (We discuss the…Read More

401(k) fee litigation – what must a plaintiff allege to survive a motion to dismiss? Forman v. TriHealth and Hughes v. Northwestern

This term the Supreme Court is considering – for the first time – critical issues in defined contribution plan fee litigation, in Hughes v. Northwestern. In this note we discuss the recent decision (September 24, 2021) by the United States District Court for the Southern District of Ohio, dismissing plaintiffs’ claims in Forman v. TriHealth,…Read More