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A recent FINRA arbitration ruling has granted seven ex-Morgan Stanley advisors the opportunity to recoup over $1.5 million in deferred compensation they claim they are owed after leaving for other firms. This victory is seen as the first step in a series of lawsuits challenging the pay policies of the Wall Street giant. The lawyers representing the claimants have assembled a group of close to 150 clients seeking similar compensation. Other law firms are also pursuing arbitrations against Morgan Stanley on behalf of ex-advisors. The case hinges on whether deferred compensation should fall under guarantees offered by the Employee Retirement Income Security Act of 1974 (ERISA). Morgan Stanley argues that the deferred compensation is meant as an incentive for loyalty and good guardianship, while the claimants argue that it is earned compensation that belongs to them regardless of their employment status. The recent FINRA arbitration ruling is seen as a positive development for the claimants, although it does not set a binding precedent for future cases. [Extracted from the article]

Technology innovation has made it easier for job-hopping working Americans of all ages to seed their nest eggs with portable savings. [ABSTRACT FROM AUTHOR]

Troy Sisum, chief legal officer of Imagine360, explains how employers can avoid litigation over their health insurance plans. [ABSTRACT FROM AUTHOR]

Despite a half century of ERISA achievements, threats linger in the form of potential tax policy changes, increased litigation and regulatory uncertainty. [ABSTRACT FROM AUTHOR]

The pending retirement advice regulation proposed by the Labor Department is facing potential challenges in Congress and the courts before the upcoming presidential election. The rule aims to strengthen fiduciary duties for retirement account rollovers and certain insurance product sales. Advocates argue that the rule would enhance consumer protections, while opponents view it as burdensome and potentially limiting access to professional advice. The timing of the final rule is tied to the election, as it will start a 60-day review period for Congress and may face legal challenges. The rule could have significant implications for wealth management firms and the insurance industry, with potential compliance costs of up to $2.5 billion per year. Supporters and opponents of the proposal are strongly divided, with opponents even seeking to eliminate fiduciary advice altogether. The rule seeks to create a more level playing field and protect trust in retirement advice. [Extracted from the article]

A surprise ruling in an ERISA case reverses earlier courts. [ABSTRACT FROM AUTHOR]

Laws such as Florida's Prescription Drug Reform Act could unravel many of the invaluable protections ERISA has provided. [ABSTRACT FROM AUTHOR]

ERISA preemption faces new questions as more states enact new mandated benefits and assert regulatory authority over certain benefits. [ABSTRACT FROM AUTHOR]

ERISA preemption faces new questions as more states enact new mandated benefits and assert regulatory authority over certain benefits. [ABSTRACT FROM AUTHOR]

Recently, retaliation has been claimed when employees incurred significant medical expenses that were to be paid by their employers. [ABSTRACT FROM AUTHOR]

Opponents of the new regulation won a legal victory in a ruling that places it in a stay during their lawsuit challenging the legality of the changes to ERISA. [ABSTRACT FROM AUTHOR]

A federal judge has rejected Missouri's motion to dismiss a lawsuit filed by the Securities Industry and Financial Markets Association (SIFMA) over the state's anti-environmental, social, and governance (ESG) investment rules. The rules require advisors and broker-dealers to obtain written consent from customers for non-financial objectives and acknowledge that incorporating ESG considerations may not solely focus on maximizing financial returns. SIFMA argues that the rules conflict with federal securities laws and violate the First Amendment. The lawsuit opens a new front in the national Republican-led battle against ESG regulations. [Extracted from the article]

Missouri has asked a federal court to toss a lawsuit filed by the Securities Industry and Financial Markets Association over the state's first-of-its-kind anti-environmental, social and governance investing rules, arguing that the securities association lacks standing to bring the lawsuit. SIFMA argued the rules conflict with federal securities laws that call for a uniform regulatory and disclosure regime across the states. SIFMA argued that the state's rules are preempted by the National Securities Markets Improvement Act and the Employee Retirement Income Security Act of 1974, claims that the state contests. [Extracted from the article]

James Gelfand, the president of the ERISA Industry Committee, explains how the Consolidated Appropriations Act of 2023 may impact employers on the healthcare front. [ABSTRACT FROM AUTHOR]

The escalating case would set a new precedent if it established fiduciary duties for entities that manage securitized mortgages that pension funds invest in. [ABSTRACT FROM AUTHOR]

"It is clear that President Biden wants Wall Street to use your hard-earned money not to grow your savings, but to fund a far-left political agenda", McCarthy said. President Joe Biden Monday followed through on his promise to veto a Congressional resolution that repealed a new labor rule allowing retirement plan managers to consider climate change and other environmental, social and governance risk factors in their investment decisions. [Extracted from the article]

A pension fund looked to impose a fiduciary duty regarding a mortgage securitization instrument, but a federal judge said no. [ABSTRACT FROM AUTHOR]

If the court ends up making this choice, intended family members may lose out — all for want of filling out a one-page form. [ABSTRACT FROM AUTHOR]

The article focuses on the extension of the compliance for the new disclosure rules under section 408(b) (2) of the U.S. Employee Retirement Income Security Act of 1974 by the U.S. Department of Labor (DOL) until January 1, 2012. It says that the extension will provide time for retirement plan service providers to disclose their plan fiduciary status to sponsors. Legal contributor Frank Palmieri adds that the assessment of fiduciary's fulfillment lies in the application of procedural prudence.

The article discusses issues concerning beneficiaries in retirement plans. Individual Retirement Account (IRA) offer benefits including the spouse is not required to be the beneficiary, the owner may name his beneficiary, and can be split into multiple IRAs with a separate beneficiary for each. Consent of a spouse is still required for the distribution from 401(k)s and other Employee Retirement Income Security Act of 1974 (ERISA)-regulated plans, including direct rollovers to IRAs.

The article looks at the inclination of employers to self-insurance as a means to better manage health care costs. It cites the responsibility of employers to do due diligence of their service providers to comply with fiduciary obligations under Employee Retirement Income Security Act (ERISA). It notes the need for self-insured employers to make sure claim auditors have experience and specialized services to meet their needs. Employers expect claims audits to control costs and lay the groundwork for a comprehensive approach to health-plan management.

If the court ends up making this choice, intended family members may lose out — all for want of filling out a one-page form. [ABSTRACT FROM AUTHOR]

Shoring up fiduciary obligations under ERISA would be a much-needed protection for investors. [ABSTRACT FROM AUTHOR]

An interview of Ken Waineo, senior director of business development operations for the Standard, is presented. Waineo states changes in retirement plans under its designation by plan administrators. He mentions analysis of the Employee Retirement Income Security Act (ERISA) 3(16) section for retirement planning. Waineo discusses association of third party administrator (TPA) in analysis of plan.

Buyout amounts are high right now, but there are many other factors to consider when guiding employees to the right choice. [ABSTRACT FROM AUTHOR]

SPDs can be great resources for employees to use before enrollment, but workers may have a tough time understanding them. [ABSTRACT FROM AUTHOR]

By learning to recognize the common challenges that plague nonqualified retirement plans, employers can look for red flags in their own plan management — and plot a corrective course of action. [ABSTRACT FROM AUTHOR]

Even if employers' concerns are exaggerated, fear of fiduciary responsibility keeps them from offering lifetime income products. [ABSTRACT FROM AUTHOR]

The article overviews the fiduciary rule and best-interest contract exemption requirement regarding the Employee Retirement Income Security Act of 1974 (ERISA) of the Department of Labor, for individual retirement account (IRA). The fiduciary rule details about the fiduciary-prohibited transactions in retirement accounts, recommendations on best-contract for IRA, and its obligations. The rule also provides information on industry-standard mandatory arbitration and its class-action lawsuit.

The article focuses on the proposed bill against fiduciary in the U.S. Topics discussed are doubts on the legislation as commented by Barbara Roper, director of the organization Consumer Federation of America; intentions of the U.S. President Donald Trump to kill the fiduciary rule and implement a new one; the U.S. Employee Retirement Income Security Act of 1974 (ERISA); and comment from Kathleen Beichert, of the organization OppenheimerFunds.

Employers can now automatically enroll workers in the voluntary benefit with an opt-out option. [ABSTRACT FROM AUTHOR]

The American Institute of CPAs' Auditing Standards Board voted to issue a long-awaited standard on audits of financial statements of employee benefit plans, although it is still awaiting some details before the standard takes effect. [ABSTRACT FROM AUTHOR]

The ERISA Industry Committee requests that the agency “clearly articulate that such contributions will not affect the tax-qualified status of an employer’s retirement plan.” [ABSTRACT FROM AUTHOR]

Ignorance is no excuse when it comes to a possible ERISA audit. Here are some hard truths to common mistakes sponsors have in their heads. [ABSTRACT FROM AUTHOR]

Hunton Andrews Kurth LLP (formerly Hunton & Williams and Andrews Kurth Kenyon) has named Robert A. Davis Jr. as special counsel in its tax and ERISA practice. [ABSTRACT FROM AUTHOR]

The article presents an interview with Susan Clausen, vice president and financial adviser for Akron, Ohio-based retirement plan consultancy firm CapTrust. Topics mentioned include the role of retirement plan committee to help companies comply with the Employee Retirement Income Security Act of 1974 (ERISA) by the U.S. Department of Labor (DOL), the role of retirement plan committee during an ERISA audit, and the ideal number of members for the committee.

"It will dramatically expand the number of advisors who will be fiduciaries under ERISA," says one expert. [ABSTRACT FROM AUTHOR]

If the court ends up making this choice, intended family members may lose out — all for want of filling out a one-page form. [ABSTRACT FROM AUTHOR]

Knowledge of ERISA, QDROs, DBAs and other retirement plans can avoid costly mishaps. [ABSTRACT FROM AUTHOR]

An interview with Sue Coffey and Ian MacKay of the Employee Benefit Plan Audit Quality Center of the American Institute of Certified Public Accountants is presented. They talk about the report from the Department of Labor's Employee Benefit Security Administration that recommends for the amendment of the Employee Retirement Income Security Act. MacKay says that the report is a wake-up call for plan sponsors. Coffey discusses things that plan sponsors look for in a benefit plan auditor.

The article focuses on the intricacies involved in the U.S. Department of Labor's Employee Retirement Income Security Act of 1974 (ERISA) owing to changes made to 401(K) plans meant for employers. It mentions that financial advisors may face litigation due to the ambiguous fee structure meant for shared accounts. It also refers to a statement by Gabriel Ayala, vice president of the financial institution Invest Financial Corp., exhorting his advisors to be cautious in this regard.

A new report by Seyfarth Shaw identifies key trends employers should keep an eye on to prevent their own lawsuit. [ABSTRACT FROM AUTHOR]