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In an important new development, the U.S. Supreme Court has unanimously ruled that when fiduciary misconduct diminishes the value of an individual account in a defined contribution plan, such as a 401(k), the harmed employee can sue for damages. In the past, courts have taken the contrary position that the federal employee benefits law only […]
In a unanimous decision favorable to employees, the U.S. Supreme Court recently ruled that individual 401(k) plan participants can sue plan administrators under the federal Employee Retirement Income Security Act (ERISA) for breach of fiduciary duty. James LaRue had initiated the lawsuit after his employer failed to follow his investment instructions, which he said resulted […]
As of press time, the U.S. Supreme Court was set to rule on a case that could redefine the claims and remedies allowed under the federal Employee Retirement Income Security Act (ERISA). The lawsuit arose after a 401(k) plan participant asked the plan administrator, which was his employer, to change his elections. The participant claimed […]
The U.S. Supreme Court has handed down an important new ruling that could open the floodgates for claims by employees charging that their employers mishandled retirement accounts. The new case involved James LaRue, who filed a lawsuit under ERISA—the federal law that governs employee benefits—claiming that his employer’s failure to follow his investment directions under […]
In a case that could have far-reaching consequences for employers and employees alike, the U.S. Supreme Court ruled on Wednesday, February 20, 2008, that the Employee Retirement Income Security Act (ERISA) allows an employee to sue his employer because of a fiduciary breach that resulted in individual losses to his 401(k) plan. James LaRue says […]
On Jan. 1, 2008, the controversial San Francisco Health Care Security Ordinance went into effect, extending health coverage to uninsured residents and requiring medium- and large-sized employers to either provide employees with health benefits or pay a fee to the city to help fund the insurance program.
Making sure you comply with the federal Employee Retirement Income Security Act (ERISA) is a lot easier when you have a basic understanding of ERISA’s rules. California plan administrators can use the following checklist as guidance to determine if their current plan complies with ERISA’s requirements, including some of the thorniest ones: 1. Have […]
A new U.S. Department of Labor (DOL) regulation protects fiduciaries when selecting and investing employee assets in qualified default investment alternatives (QDIAs) for 401(k) plans. The rule, effective Dec. 24, 2007, expands the relief provided to plan fiduciaries under the federal Employee Retirement Income Security Act (ERISA) and should be particularly valuable to fiduciaries of […]
We need to know whether we can treat new employees differently as far as the benefits we offer them. For example, our policy says that with under five years of service, employees get two weeks of vacation. However, when we hire experienced people, they want us to match the vacation they had at their old […]