Compliance Stuff

When most people think about ERISA lawsuits, the usual suspects are plan sponsors. They’re the fiduciaries who pick the investments, hire the service providers, and have the crosshairs on their backs when plaintiffs’ firms go looking for blood. But every once in a while, the tables turn, and it’s the providers themselves who end up in the defendant’s chair. That’s exactly what happened in New Jersey, where three participants in separate plans are accusing Empower Advisory Group LLC and its affiliates of orchestrating a scheme to mislead participants into rolling over into high-fee products. The Complaint The plaintiffs are from three very different plans: · Shakira Williams-Linzey, from the Central Jersey Family Health Consortium 403(b). · Jennifer Patton, from the Heliogen, Inc. 401(k). · Kathleen McFarland, from the Global Medical Response, Inc. 401(k). Together, they allege that Empower and its web of affiliates—Empower Retirement LLC, Empower Financial Services Inc., and Empower An...

  December 2023, Congress passed the SECURE 2.0 Act and was signed into law December 29, 2022.  The legislation is focused on assisting the American population prepare for their financial future--and strengthening the retirement system as a whole for both employers and employees.   SECURE 2.0 Act of 2022 is a law included retirement provisions, including the pension-like emergency saving account (PLESA).  PLESA let's workers contribute to an account in a defined contribution plan that can be used to cover unforeseen financial hardships.     PLESAs allow eligible participants to contribute  up to $2,500 (as Roth contributions ) to an emergency savings account linked to a defined contribution plan (including a 401(k) plan). Participants can withdraw the funds monthly with no penalty and no requirement to provide documentation of an emergency. The idea is that Americans can build an emergency fund they can easily access while also taking advantage of any ...