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...

Overview The world of health benefits is constantly evolving. Recent policy shifts and legislative developments are expected to impact the economic landscape and have significant implications for employer plan sponsors, insurers, third-party administrators (TPAs), and individuals covered by employer-sponsored health plans. This article provides an overview of the current landscape, highlighting key updates and strategic considerations for navigating these changes. In Depth Recent legislative updates Telehealth HDHP safe harbor:   Retroactive to January 1, 2025, high-deductible health plans (HDHPs) may continue to cover telehealth and other remote care services without making participants ineligible for health savings account (HSA) contributions. Section 1557 and gender-affirming care:   Federal rules may soon reduce healthcare nondiscrimination protections that apply to gender-affirming care. State policies vary widely. Some require coverage while others restrict it, dependin...

Two recent class action lawsuits charging a breach of fiduciary duty under the Employee Retirement Income Security Act (ERISA) have increased the stakes and raised important considerations regarding a plan fiduciary’s duty of loyalty/prudence and engagement in prohibited transactions. This follows a string of cases over the years that have expanded the responsibilities of ERISA fiduciaries in the context of the use and investment of retirement plan assets. Quick Hits The U.S. District Court for the Northern District of Texas recently ruled that an employer breached a duty of loyalty to plan participants by permitting an investment manager to invest retirement assets in holdings based on nonpecuniary environmental, social, and governance (ESG) factors . A major factor in the case was that the CFO of the employer also acted as the fiduciary overseeing the plan asset investment managers . The Supreme Court of the United States recently ruled in another case that involved allegations of p...