Page 54 - Efined Contribution News Today

Industry Voice: Back to Reality Part I - Sustainable Investing The Important Role of Active Management in Defined Contribution Schemes Kim Crabtree @ MFS Investment Management 26 April 2021 In Brief In the first of this 3-part series, we challenge common misconceptions that have led to the increased prevalence of passive investments in defined contribution (DC) schemes. To help trustees and corporate advisors weigh the pros and cons of active management, we perform a reality check on each misco...

Lawsuit: DC Plans More Vulnerable to ERISA Litigation Than DB Plans Lawyers taking aim at a company’s retirement savings plan say firms with 401(k)s should expect to be sued more than those with traditional pensions. Defined contribution (DC) retirement plans are far more susceptible to Employee Retirement Income Security Act (ERISA) lawsuits than defined benefit (DB) plans, lawyers argue in a lawsuit filed against The Wesco Distribution Inc. Retirement Savings Plan. “The potential for impr...

Opponents say the proposed legislation attempts to solve a problem that doesn’t exist. The Florida state Senate has passed a bill that would eliminate the option for nearly all new state employees to participate in a defined benefit (DB) plan, instead requiring them to join a defined contribution (DC) plan. The bill, which was sponsored by Republican Sen. Ray Rodrigues, would require new hires as of July 1, 2022, to enroll in a 401(k)-style investment plan. Employees are currently given the o...