Some Canadian Workers Will Get to 'Go for the Gold' on Work Time

January 28, 2010 (PLANSPONSOR.com) – A Hewitt Associates survey has found 25% of Canadian employers will provide on-the-job access to the 2010 Winter Olympics in Vancouver.

According to a press release, measures employers are implementing most frequently to help employees enjoy the events include:

  • Providing a TV or authorizing online viewing so that employees can watch the Games at work during their breaks and/or after work hours and, in some cases, during regular work hours;
  • Providing additional paid or unpaid time off to watch, attend, or volunteer at the Games;
  • Providing matching paid time off to volunteer, provided employees use vacation time as well; and
  • Buying tickets that are used to entertain customers or clients, as rewards for employees, or that employees can purchase for personal use.

The Race to Work

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Hewitt noted that the Olympic Games may cause problems with employees getting to the workplace; of the 123 organizations surveyed, three-quarters have employees in Vancouver. However, it found only 54% have created a business preparedness plan to address the challenges.

Among those who do have plans to address expected traffic issues, solutions include:

  • Suggesting employees use vacation time during the Games;
  • Changing work hours, so that the work day starts and ends earlier;
  • Allowing flexible work hours;
  • Implementing a reduced workweek or reduced workday;
  • Encouraging employees to use public transportation, rather than drive to work;
  • Facilitating car pooling for employees; and
  • Enabling employees to work from home.

“Excitement for the Games is building across the country, and especially in Vancouver,” said Laura Williams, a consultant in Hewitt’s Vancouver office, in the press release. “Employers that have done some advance planning will be able to help their employees enjoy the Olympics with minimal impact on their business.”

Kraft Excessive Fee Case Thrown Out

January 28, 2010 (PLANSPONSOR.com) – A federal judge in Illinois has turned away allegations by 401(k) participants at Kraft Foods Global that recordkeeping fees paid to Hewitt Associates were too high and the company stock fund was improperly unitized.

With those rulings, U.S. Magistrate Judge Sidney I. Schenkier of the U.S. District Court for the Northern District of Illinois threw out the excessive fee suit regarding the Kraft Foods Global Inc. Thrift Plan (see Court Moves Forward Kraft Foods Excessive Fee Suit).

In granting the defense request to dismiss the suit, Schenkier found that:

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  • Hewitt’s recordkeeping fees were in line with industry standards and were properly disclosed to participants via, among other things, messages of encouragement that participants should consider the fees when making investment decisions. The employees alleged that during its tenure as recordkeeper, Hewitt received $28 million in “excessive” recordkeeping fees.
  • Kraft plan fiduciaries regularly reviewed their relationship with Hewitt.
  • Kraft’s decision to unitize the company stock funds was common in other 401(k) plans and not improper, rejecting plaintiffs’ assertion that the setup was “inherently imprudent.” Schenkier wrote: “Here, the undisputed facts show that defendants used a reasoned decisionmaking process to determine the structure of the plan’s company stock funds and to maintain an adequate amount of cash to meet the demands of trading in the funds, and defendants disclosed adequate details of these facts to the participants.”
  • There was no wrongdoing in allowing State Street to get part of its compensation from keeping the “float” on participants’ benefits. 

Schenkier pointed out that fiduciaries are frequently faced with competing interests and goals and are only required under the Employee Retirement Income Security Act (ERISA) to apply a prudent process in their plan management.

“Often, no one decision will simultaneously advance all goals,” Schenkier wrote. “That is why the requirement that a fiduciary act prudently mandates that he or she use a ‘reasoned decisionmaking’ process … and not that the choice resulting from that process be one that all will agree was the optimal one.”

According to the court, between 2000 and 2006, Kraft’s plan had between 37,000 and 55,000 participants and held between $2.7 billion and $5.4 billion in assets.

The latest court ruling is available here.

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