On April 3, the Nevin & Fred podcast went on the road to San Diego

On April 3, the Nevin & Fred podcast went on the road to San Diego

Along with their alliterative illustrations, Nevin (not Neville — Adams) & Fred (Reish) covered:

Episode Resources: 

The What's and When's of SECURE 2.0:  https://www.napa-net.org/news-info/daily-news/what%E2%80%99s-and-when%E2%80%99s-secure-20

SECURE 2.0  https://www.napa-net.org/secure-20

The Most Impactful Provisions:  https://fredreish.com/category/secure-2-0/

There are few things more disruptive to the peace or clarity of a 401(k) plan than a switch in recordkeepers. 

Over the past several months –following the United States Supreme Court’s decision in Hughes v. Northwestern University – a number of cases, notably the Oshkosh case—and those of CommonSpirit and TriHealth—have brought with them what appears to be a higher standard of “plausibility” in asserting claims that can get past the standard motion to dismiss.

In this episode Nevin & Fred take a look at the new litigation landscape for ERISA plans, as well as providing updates on a series of suits involving the BlackRock LifePath target-date funds, as well as a surprising decision regarding rollovers and the fiduciary rule – and a flurry of legislation regarding the Labor Department’s Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” – a.k.a. the so-called ”ESG rule.”

Oshkosh Lays Down a New Standard

BlackRock TDFs

Rollover Rule(s)

ESG

The SECURE 2.0 Act of 2022 was signed into law in the waning days of 2022.  But there are some things that need fixing – and some things you may have overlooked.  Nevin (Adams) and Fred (Reish) highlight five key areas calling for attention.

The short list of things covered in this episode:

Episode Resources

The What’s and When’s of SECURE 2.0  https://www.napa-net.org/news-info/daily-news/what%E2%80%99s-and-when%E2%80%99s-secure-20

Key SECURE 2.0 Act Provisions and Effective Dates  https://www.napa-net.org/news-info/key-secure-20-act-provisions-and-effective-dates

Major SECURE 2.0 Error Puts Catch-Ups in Jeopardy  https://www.napa-net.org/news-info/daily-news/major-secure-20-error-puts-catch-ups-jeopardy-ara%E2%80%99s-graff

In the waning days of 2022, President Biden signed into law legislation that had moved through the House and the Senate on a strong bipartisan basis that greatly expands retirement savings opportunities for working Americans.

In this episode Nevin (Adams) & Fred (Reish) unpack some of the major provisions, and their implications for retirement.

Episode Resources

SECURE 2.0 Resource Page

The 10 Highest Impact Provisions of the SECURE 2.0 Act

It’s Official: SECURE 2.0 Enacted into Law

The U.S. Department of Labor has unveiled its much-anticipated final ESG rule that it says will allow “plan fiduciaries to consider climate change and other environmental, social and governance factors when they select retirement investments and exercise shareholder rights, such as proxy voting.”  The operative word for plan fiduciaries is MAY, not must consider ESG factors—a concern that had arisen in the wake of the proposed regulation previously issued.

Episode Resources

Fiduciaries May, But Not Must Consider ESG: DOL: https://www.napa-net.org/news-info/daily-news/breaking-news-fiduciaries-may-not-must-consider-esg-dol

Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights

It’s Official: Final ESG Reg Published in the Federal Register: https://www.napa-net.org/news-info/daily-news/it%E2%80%99s-official-final-esg-reg-published-federal-register

A recent flurry of lawsuits has "targeted" holders of the BlackRock LifePath target-date funds and their decision(s) to select, and hold, on their investment menu.  Ironically, the plan fiduciaries have been charged with "chasing low fees" with a disregard for the funds' performance - which the plaintiffs say was tracked against an inappropriate benchmark.  In this episode, Nevin & Fred look at the issues raised by - and the issues involved in - this new round of ERISA litigation.

Episode Resources

Home Depot Hammers Back Excessive Fee Suit https://www.napa-net.org/news-info/daily-news/home-depot-hammers-back-excessive-fee-suit

ARA Joins Amicus Brief Rebuffing BlackRock TDF Suit  https://www.napa-net.org/news-info/daily-news/ara-joins-amicus-brief-rebuffing-blackrock-tdf-suit

‘Damned’ (Even) If You Do https://www.napa-net.org/news-info/daily-news/damned-even-if-you-do

Shah Miller Targets (Yet) Another 401(k) with BlackRock TDF  https://www.napa-net.org/news-info/daily-news/shah-miller-targets-yet-another-401k-blackrock-tdf

There’s an old saying that when you assume… well, that applies double (and then some) to ERISA plan fiduciaries.  In this episode, Nevin (Adams) and Fred (Reish) discuss five – with reminders about how to avoid winding up in trouble.

Episode Resources

https://www.napa-net.org/news-info/daily-news/5-dangerous-fiduciary-assumptions

https://www.napa-net.org/news-info/daily-news/5-things-your-plan-committee-members-need-know

https://www.napa-net.org/news-info/daily-news/5-plan-committee-missteps

With the written best interest documentation requirement now in place (as of July 1), and with some evidence that some advisors might not have focused on that deadline (or a series of others that took effect in February), in this episode Nevin (Adams) & Fred (Reish) look at some new ways to “fix” non-compliance issues.

Episode Resources

Best Interest Standard of Care for Advisors #93: Correction of Failures to Satisfy PTE 2020-02  https://fredreish.com/best-interest-standard-of-care-for-advisors-93/

IRS Pilots Pre-examination Retirement Plan Compliance Program  https://www.asppa-net.org/news/irs-pilots-pre-examination-retirement-plan-compliance-program

Morningstar Urges DOL to Revisit TDF Guidance  https://www.napa-net.org/news-info/daily-news/morningstar-urges-dol-revisit-tdf-guidance