Deals & People August 13, 2010

John Hancock Beefs Up Its Western Division

John Hancock Retirement Plan Services (RPS) has hired two regional vice presidents (RVPs) in its Western Division.  
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According to the announcement, Doug Ambrose has joined John Hancock RPS as RVP for the East Bay and North Bay in San Francisco and Candy Eiler has been hired as RVP in Seattle. 

Ambrose joins the company with 20 years of sales experience in the financial services industry, most recently a managing director for Mass Mutual Financial Services based in Walnut Creek, California.  He had been a wholesaler of retirement plan services in Northern California and Northern Nevada. Prior to that, he had been vice president in sales for Principal Financial Group responsible for retirement plan sales in Northern California. 

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“Doug has been successful in growing retirement plan services business in his region for many years,” said Tom Bruns, Divisional Vice President, Western Division, John Hancock RPS. “We are very glad he’s joined our team and know his extensive leadership and sales background will be an asset to our clients in the San Francisco region.” 

Eiler has nearly 15 years experience in financial services, with a concentration in retirement plans in the last decade.  She was most recently a client service specialist for Panagiotu Pension Advisors, Inc. where she worked with Third Party Administrators (TPAs) “to deliver her 350 clients a customized retirement plan that addressed their individual needs,” according to the announcement.  Before that, she worked for John Hancock RPS as a communication associate. 

“We are excited Candy has re-joined John Hancock RPS in this sales role,” said Bruns. “Her in-depth knowledge in working with clients, financial representatives and TPAs in our business will be very helpful as we expand our business in Seattle.” 

Compliance August 12, 2010

Court OKs $16.5M Caterpillar 401(k) Fee Pact

A federal judge has given final approval to a $16.5-million settlement of an excessive 401(k) fee suit against Caterpillar, Inc.
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Senior U.S. District Judge Joe Billy McDade of the U.S. District Court for the Central District of Illinois okayed the deal in an order issued Thursday.

According to the order, the agreement calls for the employer not to include retail mutual fund shares as core investment options in the plans, to increase employee communications about 401(k) investment options and their associated fees, and for an independent fiduciary to monitor the plans during a two-year settlement period.

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McDade said one factor in his decision to support the pact was his judgment it was ultimately in plaintiffs’ best interest. “Plaintiffs have a hard row to hoe,” McDade wrote. “This litigation entails complicated ERISA claims that are not only dependent on the statute but also on various regulations that implement ERISA. These claims are relatively unique with limited case authority in support.”

Among other allegations, plaintiffs charged the employer committed violations of the Employee Retirement Income Security Act (ERISA) by including the more expensive retail fund shares, thereby unnecessarily driving up plaintiffs’ investment fees.

Caterpillar contended that it had complied with ERISA and that it only agreed to the settlement because it thought the move would be in the best interests of the company and its shareholders (see Caterpillar Ready to Ink $16.5M Fee Suit Settlement).

Last week, General Dynamics agreed to a similar 401(k) excessive fee suit settlement, worth $15.1 million. (see Parties Settle General Dynamics 401(k) Fee Case).

 

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