5-EMPLOYEE BENEFITS

5-Employee Benefits

5-Employee Benefits

Part 1

Revenue sharing has become a major subject of litigation against 401(k) plan sponsors and plan providers (Anderson, 2007). This article focuses on the litigation involving plan providers, that is, the entities that offer 401(k) packages, including recordkeeping, to the marketplace (Anderson, 2007). We examine in minutia Haddockv. Nationwide economic Services, Inc., in which there is a published court opinion on the matters of fiduciary rank and prohibited transactions associated to revenue sharing.

Revenue distributing lawsuits against design providers (entities offering 401(k) packages, encompassing recordkeeping, to the marketplace) are mainly class activities claiming that the acknowledgement ...