Groom principal and firm chair, David Levine, is featured in the Law360 article, “DOL’s Push To Curb 401(k) Suits Could Face Court Challenges.” The article discusses how the DOL’s new proposed rule “aims to reduce ERISA litigation” by providing a safe harbor for plan fiduciaries related to selecting 401(k) investments that include alternative assets. As explained by Levine, “Underneath it all, it really is designed to reduce litigation, and gives a whole bunch of steps that are designed to basically say, if you’ve done these process steps, you’re in a good position for litigation.” Clarifying the litigation-related goal of the proposed rule, “Levine highlighted how reducing benefit plan litigation was a stated goal of President Donald Trump’s executive order from August that focused on alternative asset investing and called for regulations from the DOL.”
Levine also pointed out language in the proposed rule’s investment selection scenarios as another way the DOL’s regulations might serve as a defense against ERISA fee litigation, including a specific example walking through considerations involved with adding lifetime income benefits to a plan that involved higher fees. And he stated that, “Historically, … lawsuits have often said, ‘[a fund is] not the cheapest, it’s not the cheapest.’ And this makes it clear — it’s not about being the cheapest from the department’s view. So I think that’s a real positive.”
To read the article, click here.
