CUMIS provides a full range of personal insurance to the Canadian credit union system, including credit and mortgage protection, life, disability and critical illness, home, auto, travel and employee benefits. It also provides business, liability and property insurance to credit unions, as well as wealth management services and products, including credit union group retirement plans. The completion of the transaction results in a strong, Canadian-owned supplier of insurance products and services to Canadian credit unions and their members. On completion of certain reorganizational steps, pursuant to which Co-operators transferred its longstanding 50 per cent joint venture insurance business with CUMIS to CUMIS, and involving, among others, CUMIS, Co-operators and Central 1 (expected by mid-2010), Co-operators will hold approximately 73 per cent of CUMIS and Central 1 will hold approximately 27 per cent of CUMIS.The Co-operators legal team was led by its General Counsel, Frank Lowery, … [Read more...] about Co-operators Life Insurance Company and Central 1 Credit Union Complete Acquisition of The CUMIS Group
Cuna mutual 401k
Over the past two weeks, a Yale Law School professor has sent letters to approximately 6,000 sponsors of 401(k) plans implying that they may have breached their fiduciary duties with respect to plan costs and investments. Many of the letters state that the sponsor’s plan has been identified as a “potentially high-cost plan,” and all of the letters we have reviewed suggest that the sponsors consider improving their fund lineup and eliminating more expensive fund offerings. The letters refer to a study prepared by the professor and a colleague based on data compiled from Forms 5500 for the year ending December 31, 2009 . Given the current focus on plan expenses by the DOL and in class action litigation, plan sponsors who received such a letter have a right to be concerned. But even those who did not need to be aware of this issue and take appropriate action. In some of the letters, the professor states: “Based on an extensive database of … [Read more...] about The “Yale Professor Letters”: What 401(k) Sponsors Need to Know (and Do) Now
In 2010, the Department of Labor released multiple sets of regulations regarding 401(k) fee disclosure rules. In addition to helping plan fiduciaries fulfill their duty to make informed decisions about the reasonableness of fees, the regulations require plan administrators to disclose investment-related expenses and information, as well as various administrative and individual expenses. Under these new rules, plan administrators must lay out—at least quarterly—all administrative expenses, including accounting and recordkeeping fees. Administrators that fail to meet this new disclosure could have liability for investment losses that participants incur when they self-direct their accounts. In addition, administrators that willfully violate their obligations could be subject to fines and injunctive relief.For self-directed 401(k) plans—which offer individual participants a broader universe of investment options—fee information is often confusing and difficult to … [Read more...] about 401(k) Fees: A Hot Topic for Plan Fiduciaries and Participants
The Supreme Court holds that ERISA’s limitations period does not bar an alleged breach for failure to monitor a plan’s investments.BackgroundOn May 18, the Supreme Court issued a unanimous decision in Tibble v. Edison International, holding that an ERISA fiduciary has an ongoing duty to monitor plan investments and that allegations of a breach of this duty may give rise to a timely claim even when a challenge to the fiduciary’s initial selection of that same investment would be barred by ERISA’s six-year statute of repose.In reaching this decision, the Supreme Court made clear that before finding a claim for breach of fiduciary duty untimely, courts must first “consider the contours of the alleged breach,” which often means turning to the law of trusts. Doing so here, the Court held that ERISA, like trust law, imposes upon a plan fiduciary a “continuing duty to monitor trust investments and remove imprudent ones,” … [Read more...] about Tibble v. Edison International Decision Finds Ongoing Duty to Monitor Investments in 401(k) Plans
Retirement plan revenue sharing has a bad reputation. Numerous lawsuits have been filed during the past year against employers that sponsor 401(k) plans alleging breach of fiduciary duty under the Employee Retirement Income Security Act of 1974 (“ERISA”) with respect to revenue sharing generated by the plans’ investments. The Securities and Exchange Commission has pursued high-profile investigations of investment providers regarding their revenue sharing practices in retirement plans and otherwise. And the Department of Labor has devoted significant attention to retirement plan revenue sharing arrangements over the past several years to enforce ERISA’s strict fiduciary duties of loyalty and prudence.All that said, ERISA does not prohibit retirement plan revenue sharing or even the retention of revenue sharing payments by retirement plan service providers. So, what’s the concern? What do 401(k) plan fiduciaries need to know about revenue sharing? … [Read more...] about ERISA Fiduciary Issues for Plan Sponsors: What Do 401(k) Plan Fiduciaries Need to Know About Revenue Sharing?