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Miami

Cypen & Cypen
NEWSLETTER
for
May 21, 2015

Stephen H. Cypen, Esq., Editor

1. CLAIM FOR ONGOING BREACH OF FIDUCIARY DUTY TO MONITOR INVESTMENTS AND REMOVE IMPRUDENT ONES NOT BARRED BY 6-YEAR STATUTE OF LIMITATIONS: A fiduciary normally has the continuing duty of some kind to monitor investments and remove imprudent ones. A plaintiff may allege that a fiduciary breached the duty of prudence by failing properly to monitor investments and remove imprudent ones. In such case, so long as the allowed alleged breach of the continued duty occurred within six years of suit, the claim is timely. The U.S. Ninth Circuit Court of Appeals erred by applying a 6-year statutory bar based solely on the initial selection of three funds without considering the contours of the alleged breach of fiduciary duty. Tibble v. Edison International, Case No. 13-550 (U.S. May 18, 2015), as reported by benefitslink.com.

2. SPD POSTED ON COMPANY INTERNET NOT DELIVERED TO EMPLOYEES: A federal district court has found that merely posting a summary plan description on a company intranet did not satisfy the electronic disclosure rules under Employee Retirement Income Security Act. The Court noted that the regulations relating to disclosure of SPDs through electronic means require the SPD to be furnished, not simply made available. Thomas v. CIGNA Group Ins., No. 09-CV-5029 (E.D.N.Y. Mar. 2, 2015), as reported by The Wagner Law Group in benefitslink.com.

3. TRENDS IN CLAIMS FOR SOCIAL SECURITY BENEFITS: Over the past 25 years, the average retirement age for U.S. workers has been rising, a trend that should align with when people first claim Social Security. But the percentage of all initial claimants who are age 62 shows little change until recently. A better metric to capture claiming behavior over time -- when the population is aging -- is the percentage of workers turning age 62 who claim at 62. This measure, based on unpublished Social Security data, shows a steep decline in claiming at 62 since the mid-1990s: from 56% to 36% for men. In short, while more than a third of workers still claim right away, a growing number are waiting until their mid-60s or later. Center for Retirement Research at Boston College, as published by benefitslink.com.

4. 36TH ANNUAL POLICE OFFICERS' AND FIREFIGHTERS' PENSION TRUSTEES' SCHOOL: The 36th Annual Police Officers' & Firefighters' Pension Trustees' School will take place on June 2-4, 2015. You may access information and updates about the Conference, including area maps, a copy of the program when completed and links to register at the Residence Inn Tallahassee Universities at the Capitol. Please continue to check the FRS website for updates regarding the program at www.myflorida.com/frs/mpf. All police officer and firefighter plan participants, board of trustee members, plan sponsors and anyone interested in the administration and operation of the Chapters 175 and 185 pension plans should take advantage of this unique, insightful and informative program.

5. FPPTA 31ST ANNUAL CONFERENCE: The Florida Public Pension Trustees Association’s 31st Annual Conference will take place on June 28 through July 1, 2015 at the Boca Raton Resort & Club, Boca Raton. A link on FPPTA’s web site, www.fppta.org, will take you to the Boca Raton Resort & Club site to make your room reservations. You may access information and updates about the Conference at FPPTA’s website. All police officer and firefighter plan participants, board of trustee members, plan sponsors and anyone interested in the administration and operation of the Chapters 175 and 185 pension plans should take advantage of this conference.

6. APHORISMS: There are no new sins; the old ones just get more publicity.

7. TODAY IN HISTORY: In 1924, Leopold & Loeb kidnap Bobby Franks for fun.

8. KEEP THOSE CARDS AND LETTERS COMING: Several readers regularly supply us with suggestions or tips for newsletter items. Please feel free to send us or point us to matters you think would be of interest to our readers. Subject to editorial discretion, we may print them. Rest assured that we will not publish any names as referring sources.

9. PLEASE SHARE OUR NEWSLETTER: Our newsletter readership is not  limited  to  the   number  of  people  who  choose  to  enter  a  free subscription. Many pension board administrators provide hard copies in their   meeting   agenda.   Other   administrators   forward   the   newsletter electronically to trustees. In any event, please tell those you feel may be interested that they can subscribe to their own free copy of the newsletter at http://www.cypen.com/subscribe.htm.

10. REMEMBER, YOU CAN NEVER OUTLIVE YOUR DEFINED RETIREMENT BENEFIT.

 

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Items in this Newsletter may be excerpts or summaries of original or secondary source material, and may have been reorganized for clarity and brevity. This Newsletter is general in nature and is not intended to provide specific legal or other advice.


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