Season 4 Episode 3
Some recent suits – and federal court rulings – provide some timely reminders about the importance of a prudent process and following the plan document.
In this podcast episode, Nevin (Adams) & Fred (Reish) discuss the background, issues, and implications behind:
(1) Suits regarding reallocation of forfeitures – offsetting employer contributions:
401(k) Forfeiture Fiduciary Breach Suit Now Targets Tetra Tech | National Association of Plan Advisors (napa-net.org)
(2) The importance of following the plan document:
DOL Successfully Sues Employer for Misuse of Forfeitures | National Association of Plan Advisors (napa-net.org)
(3) Fiduciary defendants prevail in two separate (and very different) cases because they had prudent, documented processes in place:
Prudent Process Prevails (Again) in Proprietary Fund Suit | National Association of Plan Advisors (napa-net.org)
Breaking News: flexPATH Prevails in Suit Brought by Schlichter | National Association of Plan Advisors (napa-net.org)
(4) Participant suit challenging ESG “bias” of investment manager proxy voting clears motion to dismiss:
American Airlines Pilot’s 401(k) ESG Suit Clears Motion to Dismiss | National Association of Plan Advisors (napa-net.org)
UPDATE: American Airlines Moves (Quickly) for Summary Judgment in ESG 401(k) Suit | National Association of Plan Advisors (napa-net.org)