By Employee Benefit Research Group
More retirement-related regulatory news for plan sponsors, including links to detailed information.
Supreme Court allows suits challenging fiduciary actions beyond ERISA’s 6-year claim filing period
The Supreme Court unanimously ruled that 401(k) plan participants may file a suit challenging the retirement plan’s fiduciaries’ actions that took place before the six-year statute of limitations period allows under ERISA for filing a claim (Tibble v. Edison Int’l, U.S., No. 13-550, 5/18/15). In so ruling, the Court rejected three appellate courts’ views on the timing for filing lawsuits challenging plan fees.
According to the decision, courts cannot dismiss these types of challenges without considering whether plan fiduciaries have fulfilled their duties to monitor those investments during the relevant six-year window.
To read the court’s opinion paper, click here.
PBGC clarifies requirements of proposed rule on multiemployer plans
The Pension Benefit Guaranty Corporation (PBGC) has received inquiries whether its proposed rule on mandatory e-filing for certain multiemployer notices would affect notices to participants. The proposed rule only affects notices to PBGC. As stated in the preamble, the proposed rule would require the following notices to be filed electronically with PBGC: notices of termination under part 4041A, notices of insolvency and of insolvency benefit level under parts 4245 and 4281, and applications for financial assistance under part 4281 (see page 18172, middle column). Further, the proposed rule does not involve the Multiemployer Pension Reform Act of 2014 (MPRA). Comments on the proposed rule are due June 2, 2015
PBGC launches pilot program for smaller asset managers
The PBGC issued a press release announcing a “Smaller Asset Managers Pilot Program” to reduce barriers to competition faced by such firms while maintaining rigorous investment risk and control standards.
To read the entire press release, click here.