A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
Great-West Annuity Lawsuit
The U.S. District Court for the District of Colorado granted and dismissed in part a motion filed by Great-West to dismiss a lawsuit filed by a participant invested in Great-West’s annuity products. The complaint alleges that Great-West breached its fiduciary duty of loyalty under ERISA by setting artificially low predetermined interest rates and charging excessive […]Read More
Tussey vs. ABB Update
On appeal, the U.S. District Court for the Western District of Missouri agreed with its original ruling in 2012, in that plan fiduciaries abused their discretion by mapping plan assets from one mutual fund to another, specifically, from Vanguard’s Wellington Fund to the Fidelity Freedom Funds (target date series). However, this court remanded the case […]Read More
Application of Retirement Plan Benefits Garnishments
A participant in an ERISA-covered qualified retirement plan was convicted of conspiracy to defraud the federal government through a mortgage scheme and ordered to pay $800,000 restitution. The qualified retirement plan in which he was invested asserted that garnishment was prohibited according to anti-alienation provisions under ERISA prohibiting the transfer or assignment of retirement plan […]Read More