Two recent cases highlight the need for plan sponsors and fiduciaries to carefully review the forfeiture provisions in their defined contribution plan documents. These cases involve Nordstrom and HP, and they underscore the importance of ensuring that plan forfeitures are handled in compliance with ERISA. Nordstrom Case Nordstrom faces allegations of
Rising Scrutiny on Health and Welfare Plan Fiduciaries: Key Legal Cases, Fiduciary Prudence, Conflicts of Interest, & Prohibited Transactions Recently, scrutiny has increased on health and welfare plan fiduciaries regarding their adherence to the Employee Retirement Income Security Act (ERISA). Three notable lawsuits—against Johnson & Johnson, Charlotte-Mecklenburg Hospital Authority, and Wells Fargo—highlight different
On September 6, 2024, the Department of Labor (DOL) updated its cybersecurity guidance for employers, plan sponsors, fiduciaries, and recordkeepers. The updated guidance includes the following tips: Beyond comparing security standards, practices, policies, and audit results to industry standards, seek service providers who employ an independent third-party auditor to review and validate their
Rising Scrutiny on Health and Welfare Plan Fiduciaries: Key Legal Cases and Best Practices In recent years, there has been a notable increase in lawsuits targeting health and welfare plan fiduciaries, reflecting a heightened scrutiny on the decisions made by these fiduciaries. The year 2024 has already seen two significant cases that highlight this