Legal

A federal court overruled the Pension Benefit Guaranty Corporation’s decision not to offer financial assistance to the bakery fund, but it now opens the door to 100 other previously ineligible pension plans to apply for special financial assistance, says the risk advisory letter.

Since the financial advisor’s resignation last month, 20 clients, representing $35 million in assets, have transferred or are in the process of transferring their accounts to Morgan Stanley, according to JPMorgan.

The dismissal of JP Morgan Chase’s lawsuit, alleging misuse of forfeited funds in its 401(k) plan to offset employer contributions, aligns with other federal judges rejecting the misuse claim under ERISA.

A federal judge in Minneapolis has approved the huge settlement against the health insurer for depleting the retirement savings of 350,000 employees due to “poorly performing” target date funds.

The SPARK Institute submitted several recommendations regarding Saver’s Match and proper use of forfeited plan funds to be part of the upcoming 2025-2026 Priority Guidance Plan, in a letter sent to the Treasury and the IRS.

This week, Cigna was again sued for fiduciary violations for using forfeited funds to reduce employer contributions to the plan, following a similar suit last month. What's surprising is that another health insurer, UnitedHealth, is now facing two similar 401(k) lawsuits.