Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, The SEC Staff Speaks Out on Standards for Rollover Recommendations, below.
Category: ERISA Litigation
ERISA Moments Ep. 26: DOL’s Rules Are Stayed: What Remains in Their Place?
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, DOL’s Rules Are Stayed: What Remains in Their Place?, below.
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Eleventh Circuit Holds That Burden of Proof of Loss Causation is on Plaintiffs in ERISA Actions
In an August 2, 2024, decision in Pizarro v. The Home Depot, Inc., No. 22-13643 (11th Cir. Aug. 2, 2024), the Eleventh Circuit reaffirmed its position — and the position of the majority of federal circuit courts to address the issue — on the burden of proving loss causation for purposes of an ERISA claim for fiduciary breach. Loss causation is an element of a plaintiff’s claim for damages because of a breach of fiduciary duty, and the plaintiff bears the burden of proving causation of loss.
Pizarro involves claims by a putative class of Home Depot employees (Plaintiffs) who participated in Home Depot’s 401(k) plan. Plaintiffs alleged that the plan had excessive fees and imprudent investment options, but the United States District Court for the Northern District of Georgia granted summary judgment in Home Depot’s favor because Plaintiffs could not prove that they suffered any losses caused by a fiduciary’s alleged breach. To make such a showing, Plaintiffs would have to prove that a hypothetical “prudent” fiduciary would have not made the same choices that the defendants made. The District Court held that Home Depot’s investment decisions were “objectively prudent,” whether or not those decisions resulted from the right process, and thus Plaintiffs could not prove damages.
ERISA Moments Ep. 25: The Fiduciary Rules and the Impact on Advisors and Insurance Agents
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, The Fiduciary Rules and the Impact on Advisors and Insurance Agents, below.
ERISA Moments Ep. 24: The Final Fiduciary Regulation and Exemptions Explained
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, The Final Fiduciary Regulation and Exemptions Explained, below.
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ERISA Moments Ep. 23: ERISA Litigation Odds and Ends: ESG, Crypto and Forfeitures
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, ERISA Litigation Odds and Ends: ESG, Crypto and Forfeitures, below.
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In Case You Missed It: Spotlight on Benefits – 2024 Winter
Written by members of Faegre Drinker’s benefits and executive compensation team, this blog features analysis and information on matters related to retirement plans, health and welfare plans, ESOPs, fiduciary governance, and other benefits issues.
This quarterly digest provides links to our most popular posts during the past few months so that you can catch up on what you missed or re-read them.
ERISA Moments, Ep. 13: Rollover Recommendations Will Be Fiduciary Advice … And What About Withdrawals?
By Bradford Campbell and Fred Reish
We’re looking at the DOL’s fiduciary proposal and the prohibited transaction exemptions associated with it. In this episode, Fred and Brad are talking about rollovers. The proposed definition of fiduciary advice basically says that a one-time investment recommendation can result in an adviser or insurance agent becoming a fiduciary.
Five Habits of the Healthy Health Plan Fiduciary
By Kendra L. Roberson
As it is often said, “the only constant in the world is constant change.” So it is important for health plan fiduciaries to periodically review the fundamentals for consistency and compliance to avoid risk and costly mistakes. We provide a health plan fiduciary checklist — with five actions that health plan fiduciaries can take to help keep an organization safe and successful.
Roth Employer Contributions
By Doug Heffernan and Mark Rosenfeld
On December 20, 2023, the IRS issued Notice 2024-2, which provides question-and-answer guidance on various aspects of the SECURE 2.0 Act. This post focuses on the ability to make employer contributions (match or nonelective) as Roth contributions under SECURE 2.0 Act, Section 604.
Strict Construction: Seventh Circuit Affirms Written Pension Obligations
On March 22, 2024, the United States Court of Appeals for the Seventh Circuit issued a ruling in Bulk Transp. Corp. v. Teamsters Union No. 142 Pension Fund, ordering the Teamsters Union No. 142 Pension Fund (the “Fund”) to repay Bulk Transp. Corp. (“Bulk Transport”) $2.3 million in withdrawal liability it had erroneously assessed upon Bulk Transport.
Bulk Transport and the Fund had a collective bargaining agreement (“CBA”) from 2003 to 2006. The CBA included a Construction Agreement and a Steel Mill Addendum. In 2004, Bulk Transport signed a contract for LISCO work – a term used by the parties to describe work hauling commodities. The LISCO work was not explicitly covered by the CBA, but Bulk Transport made contributions for the work using the wage rated and pension terms of the Addendum because the Union threatened to strike otherwise. In 2005, Bulk Transport stopped performing the LISCO work and subsequently stopped making contributions to the Fund for the employees who were performing that type of work. The Fund assessed withdrawal liability on Bulk Transport. Bulk Transport paid the withdrawal liability but requested arbitration.
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ERISA Moments Ep. 22: An Update on the DOL Fiduciary Proposals: A Race to the Finish
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, An Update on the DOL Fiduciary Proposals: A Race to the Finish, below.
ERISA Moments Ep. 21: The DOL Fiduciary Proposals and Rollover Recommendations
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, The DOL Fiduciary Proposals and Rollover Recommendations, below.
Continue reading “ERISA Moments Ep. 21: The DOL Fiduciary Proposals and Rollover Recommendations”