"Citi has announced plans for a voluntary program that's part of its larger Action for Racial Equity initiative ... Under the Diverse Asset Manager Program, Citi commits to pay all or part of the fees of diverse asset managers for the ERISA plans it sponsors.... [ Advisory Opinion 2023-01A ] applies to Citi's ERISA-covered plans, which include defined benefit and defined contributions plans."   MORE >>

Issue: Whether a participant in an ERISA plan who asserts statutory claims under that statute can be compelled, pursuant to a binding arbitration provision, to submit his claims to individual arbitration. [ Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors , No. 22-1098 (10th Cir. Feb. 9, 2023; Argent Trust Co. v. Harrison, No. 23-30, cert. denied Oct. 4, 2023)] MORE >>

"[P]lan participants alleged that the 401(k) plan's fiduciary committee failed to select low cost investment alternatives for the plan's lineup, and to monitor the plan's recordkeeping expenses, both of which led the plan to pay excessive fees ... In finding against the plaintiffs, the court ... pointed to consistent and reasonable actions that the committee took throughout the class period to manage plan fees." [ Nunez v. B. Braun Medical Inc. , No. 20-4195 (E.D. Penn. Aug. 18, 2023)]   MORE >>

"Plaintiffs allege the GE Funds were managed by GEAM, GE's wholly owned investment management company, and were the only actively managed options available to Plan participants. The GE Funds, allegedly, substantially underperformed other comparable funds during the Class Period." [Haskins v. General Electric, No. 17-12123 (D. Mass. proposed settlement agreement filed Oct. 6, 2023)]   MORE >>

"In two recent lawsuits, plan fiduciaries have been accused of violating ERISA by using plan forfeitures to offset future employer contributions, as well as to pay administrative expenses. The use of forfeitures ... to offset employer contributions is a longstanding practice explicitly permitted under Treasury regulations and consistent with guidance from the [DOL][.]" [Dimou v. Thermo Fisher Scientific, No. 23-1732 (S.D. Calif. complaint filed Sep. 19, 2023); Rodriguez v. Intuit, Inc., No. 23-5053 (N.D. Calif. complaint filed Oct. 2, 2023)]   MORE >>

"[T]here are four complementary reasons to benchmark [recordkeeping] services: [1] To do the best possible for an organization's employees; [2] Because recordkeepers have innovated and responded to participants' demands to a degree that more is now available for less; [3] To comply with the DOL's 408(b)(2) regulation's requirements that fees be reasonable; and [4] Because the courts expect that it occur regularly (perhaps as frequently as every three years)."   MORE >>

"September saw a remarkable surge in pension discount rates, reaching levels unseen in over a decade. Global equities and fixed income both posted negative returns. Pension plans, on the whole, maintained or slightly improved their funded status, as asset declines were slightly less than liability decreases."   MORE >>

"Despite its supposed focus on artificial intelligence and predictive data analytics, the actual proposal is sweeping.... [B]asic tools currently in widespread use would be subject to new review and documentation rules, such as basic retirement readiness applications, phone applications, and chatbots.... [T]he proposed regulation's economic analysis does not specifically account for the potential costs for retirement savers or employers, which could be substantial. Nor does the economic analysis quantify either the need for this regulation or the potential benefits for retirement savers."   MORE >>

"403(b) plan participants have access to their own financial supermarket.... Aspire Financial Services ... provides access to more than 10,000 mutual funds from over 500 fund families ... Many 403(b) participants do not know that Aspire exists because it does not employ salespeople to pitch its products in faculty lunchrooms. This post explores various aspects of Aspire as a 403(b) plan investment provider including its use as a 'back door' to low-expense investments ... It also summarizes a comparison of 403(b) plan expenses and performance as well as three 'need to know' facts and six take-away action steps."   MORE >>