401(k) Litigation Risk Likely to Increase with COVID-19

Posted by PlanFees on Apr 20, 2020 8:00:00 AM

Economic downturns aren’t good news for anyone, but for plan sponsors and fiduciaries, they can signal double trouble as the harbinger of looming litigation. After the financial meltdown of 2008, the number of 401(k) complaints filed under the Employee Retirement Income Security Act of 1974 (ERISA) spiked to a high of 107. The number of new lawsuits dwindled to just two filings in 2013 before rising again. Experts fear the COVID-19 crisis could spawn a rash of new class-action 401(k) lawsuits from participants unhappy with the present state of their investments.

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Topics: Insider


Coronavirus-Related Distributions Offer Relief for Participants — and Possibilities for Misuse

Posted by PlanFees on Apr 13, 2020 8:00:00 AM

As part of the CARES Act, plan sponsors can now offer coronavirus-related distributions (CRDs) as a means to offer participants greater access to their retirement funds and help deal with hardships associated with COVID-19. This option waives the 10% early withdrawal penalty for participants under age 59 1/2 for amounts up to $100,000 on 401(k)s or IRAs taken between January 1 and December 31st of 2020.

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The Value of a 2-Minute Benchmark

Posted by PlanFees on Apr 13, 2020 8:00:00 AM

Q: What Do All of These Have in Common?

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PlanFees CARES Act Update

Posted by PlanFees on Apr 9, 2020 10:20:35 AM

On March 27th, 2020 the Coronavirus Aid Relief and Economic Security (CARES) Act was signed into law. Watch our video below to learn more from industry-renowned ERISA attorney Joel Shapiro, SVP, RPAG about the impact of this new law on plan sponsors and participants.

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Live Long and Prosper? A Tough Task for Sponsors

Posted by PlanFees on Apr 6, 2020 8:00:00 AM

As we live longer, more employees are staying in the workforce beyond their anticipated retirement date, a trend that demographers expect to continue until near the end of this decade.1 While some workers voluntarily choose to continue working, for many, staying in the workforce is a necessity. When surveyed, 57% of finance executives said they believed delayed retirement was primarily due to inadequate savings, forcing employees to stay on the job past their desired retirement date.2

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