Managing Partner Jerry Schlichter Quoted by The Wall Street Journal; Firm Credited with Pioneering 401(k) Fee Litigation

As reported by The Wall Street Journal, the spending legislation passed by the U.S. Senate on Thursday, December 19 proposes “the most significant changes in more than a decade to the nation’s retirement system” – including a number of provisions related to 401(k) plans.

One such provision aims to facilitate employers’ offering of annuities in 401(k) plans by insulating employers who comply with certain procedures from lawsuits if they designate an insurance company to make annuity payments and that insurer fails to pay claims. As to the prospect of employers adding annuities to 401(k) plans, managing partner Jerry Schlichter offered words of caution: “employers and fiduciaries are going to have to be very careful in assessing annuities in 401(k) plans and understanding their pricing and benefits”, noting the tendency for variable annuities to be overpriced.

We are proud to be pioneers in 401(k) litigation. For additional information about Schlichter Bogard & Denton, please contact us at 800-873-5297 or sbd@uselaws.com.