Is the Tide Turning in Favor of Plan Sponsors in Excessive Fee Cases?

A recent Seventh Circuit case reads the U.S. Supreme Court’s decision in Hughes v. Northwestern as just rejecting the assumption that offering an array of high- and low-cost investment options insulates fiduciaries from liability. In Albert v. Oshcosh Corp., the Seventh Circuit stated that plaintiffs had overstated the significance of the Hughes case, ruling that the case does not require plans to regularly go out to bid for services.

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Legal Developments

• 7th Circuit Affirms DOL Authority to Investigate ERISA Plan Cybersecurity
  The Seventh Circuit has ruled that a defined contribution plan recordkeeper must comply with a broad U.S. Department of Labor (DOL) administrative subpoena seeking information about cybersecurity practices.
• DOL Proposal May Disrupt Plan Sponsor Investment Arrangements
  The DOL recently proposed significant changes to the qualified professional asset manager (QPAM) prohibited transaction exemption widely used by asset managers for nearly four decades.
• Drug Reporting Rules Present Challenges for Many
  The new prescription drug reporting mandate, adopted as part of the 2021 Consolidated Appropriations Act (Pub. L. No. 116-260) requires group health plans and health insurers to report detailed data about prescription drug pricing (including rebates) and healthcare spending. The first reports are due by December 27, 2022, and annually thereafter.

Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.  

• Employee Benefits & Executive Compensation Key Legal Developments Tracker
  Stay informed on new developments.
  • ERISA Litigation. PricewaterhouseCoopers retirees who accused the accounting firm of lowballing their lump-sum pension benefits asked a New York federal court to bless a $267 million class action settlement that would end the suit after more than 16 years of litigation.
  • Retirement Plans. IRS released an advance version of Notice 2022-45 extending the deadline for amending an eligible retirement plan (including an IRA) to December 31, 2025, to reflect the provisions of the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136) (CARES Act) and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Pub. L. No. 116-260) providing special tax treatment regarding coronavirus (COVID-19)-related distributions and qualified disaster distributions, respectively. See prepublication draft.
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• The Practical Guidance Journal Fall Edition features impacts of the Dobbs v. Jackson Health Organization decision on employers, healthcare, insurance, and privacy concerns, and tracks the status of state law changes.

• New and Updated Practical Guidance Content
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  • ACA Nondiscrimination Rules for Health Programs and Activities (ACA Section 1557)
  • Defined Contribution Plan Notices (Plan Events)
  • Equity Incentive Compensation Plans for Start-Ups
  • Investment Review Checklist for Investment Committee (401(k) Plan)
  • Open Enrollment Notices Checklist (Health and Welfare Plans)
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