Overview
This program will provide insight into the basis for the majority of fiduciary litigation both currently in the courts and closed, cases that have settled and those that were dismissed due to proper due diligence by plan fiduciaries. Since inception in 2007 with a landmark case the class action suits against fiduciaries' service in both 401(k) and 403(b) plans has grown exponentially with over 100 cases to date and growing. The material will address the basis for the litigation, how to avoid liability and related fiduciary responsibilities.
It will answer the question, "Who is a fiduciary and what are their responsibilities." It is clear from the history of cases currently in the courts and those that have settled that the nature of the claims has expanded, some of which were unsupported, others that result in conflicting opinions in the courts and others that provided additional claims for plaintiffs.
In addition to the growing litigation the program will also delve into the rules for remittance of employee deferrals, issues related to auto-enroll plans and required disclosures in accordance with Department of Labor rules. A key issue that can cause plan sponsors to inadvertently cause a fiduciary breach involves plan expenses. Which expenses can be paid with plan assets and which expenses must be paid by the plan sponsor. Those questions will be addressed with details to prevent fiduciary oversight. When appropriate, examples will be provided including benchmarking, a Guide to Vendor Services, mutual fund expenses, and late remittances of employee deferrals.
Why you should Attend
If you are in a fiduciary position as part of your employer's plan, an investment advisor or a plan sponsor it is imperative that you become familiar with the underlying issues that are the focus of the many cases brought to court over the past several years. Understanding the issues is the key to avoiding becoming a defendant subjecting the plan and its fiduciaries to a seven-figure settlement or court directed payment to the plan participants.
Plaintiff's counsel has recognized the attractive legal fees available for those cases that are resolved in favor of the plaintiff and as a result several law firms have joined the search for potential clients ranging from traditional 401(k) to universities and colleges' 403(b) plans. In some cases, the court ordered payment or settlement to be mid eight figures.
With this knowledge you will become a valued advisor or fiduciary as you provide the necessary services to the plan.
Areas Covered in the Session
- Definition of "Fiduciary"
- Fiduciary duties
- Participant disclosure
- Revenue sharing
- Investment policy statement
- Qualified Default Investment Alternative (QDIA)
- Target Date Funds
- Risk profile
- Timely deposit of employee deferrals
- Litigation issues
- Share classes
- Benchmarking
- The process
- Case summaries
Who Will Benefit
- All Plan Fiduciaries
- Investment Committee Members
- Named Fiduciaries
- Plan Sponsors and Investment Advisors
Speaker Profile
Stephen Abramson is the President and founding partner of APS Pension Services, LLC established in 1977, a mid-size consulting and actuarial firm employing twenty-two professional and support staff specializing in pension and pension-related services. For over 40 years, APS has been providing closely held businesses with financial services including pension design and administration, business succession planning, and wealth preservation planning. In 2015 APS Investment Management was established to provide fiduciary services to 401(k) and 403(b) plans and in 2018 APS Wealth Management, a Registered Investment Advisor (RIA), was established to provide investment management services to individual clients and retirement plans replacing a previous relationship with a Broker/Dealer.
Steve graduated from Cornell University in 1964, earned the designation of Chartered Life Underwriter in 1967 from the American College, Certified Pension Consultant in 1970 from the American Society of Pension Professionals and Actuaries and Chartered Financial Consultant from the American College in 1972.
Steve has taught professional level education programs for the American Society of Pension Actuaries; lectured to various professional groups, including the National Conference of CPA Practitioners, The NYS Society of CPAs, Nassau Bar Association, the C.W. Post Tax Institute, and the National Institute of Pension Administrators; and conducted continuing education seminars for Certified Public Accountants for the past 35 years.
He is co-author of Plan Smart, Retire Rich published by McGraw Hill in 1998; author of Advisor’s Guide to Qualified Plans originally published by Aspen Publishing in March 2002 and recently updated with the 2021 eighth edition, and Retirement Financial Management for Clients Approaching Retirement published by Aspen Publishing in August 2002. A less technical version of Advisor’s Guide to Qualified Plans entitled Guide to Qualified Retirement Plans: A Plain Language Primer was published by the International Association of Employee Benefits in March 2005. The second edition of this book was released in 2008