January Benefits Brief

Settlement Reached in Fiduciary Breach Case 

A settlement is currently pending in the case of Braden v. Wal-Mart Stores, Inc. et al. In this case, a participant brought claims against his Plan's sponsor and named fiduciary for execessive fees and imprudent selection of investment options. Under the terms of the proposed settlement, the defendents will pay $13.5 million, which will be used to pay plan expenses. The defendents also agreed to retain an investment advice fiduciary to make recommendations on their fund lineup and monitor plan investments. 

Settlement in Major 401(k) Fee Case is Preliminarily Approved - Goodwin Procter 


Evaluating Service Providers and Expenses Under 408(b)(2) 

Under the new 408(b)(2) regulations, plan service providers will be required to provide information regarding their services and fees to plan sponsors. Plan sponsors must ensure that they have received all of the information they need to evaluate their service provider(s). As part of their review, plan sponsors need to expand their focus beyond costs, looking at services provided, results obtained, and the needs of their plan and participant population. 

Just Out of Reish: Burden "Sum" - Plan Sponsor 


Building an Investment Menu That Helps Participants Make Good Choices 

Plan sponsors are building their investment menus to help participants make good decisions in their investment selection. Many plans are using a tiered approach to their investment menu, grouping investment options to make fund selection easier for each participant based on their investment knowledge. One of the most common approaches is a two-tier array of target date funds alongside the familiar broad market mutual funds. Participants with less investment knowledge, or less inclination to actively manage their retirement portfolio can be steered towards the first tier of target date funds, while participants who desire a more customized portfolio can select from among the broader mutual fund array.  

More Sponsors See Benefits in Investment Tiering - Vanguard 


Key Administrative Deadlines for Calendar-Year Defined Contribution Retirement Plans 

Milliman Employee Benefits Research Group has released a calendar of key administrative dates and deadlines for 2012. 

Key Administrative Dates & Deadlines for 2012 Calendar-Year Defined Contribution Retirement Plans - Milliman, Inc. 

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