Since the beginning of the year, at least two dozen lawsuits have been filed accusing plan sponsors and other fiduciaries of plan mismanagement and breaches of their ERISA duties. Class-action suits are pending in more than half of federal district courts.
When retirement plan sponsors fail to satisfy the fiduciary standards set forth under ERISA, they can face severe consequences ranging from Department of Labor enforcement to private litigation. To defend themselves against both ERISA violations and the liabilities that follow, plan sponsors need to understand their fiduciary obligations and institute a system of checks and balances for ensuring plans operate in accordance with these requirements.
