ERISA mandates that employers take responsibility for plan administration and take prudent actions
Posted: Sat Dec 28, 2024 5:12 am
It doesn’t require employers to have benefits plans, but if they choose to offer one, they are responsible for the actions related to it. The fiduciary insurance policy doesn’t take away liability; it provides protection by paying the legal fees, potential settlements or judgments associated with a benefits plan management error. For example, assume your company has had a benefits plan for several years on which directors and officers voted.
You hired a third party to administer the plan. However, this third party has a history of making high-risk investments for the plan. When looking at their retirement options, an employee sees that the funds list of saudi arabia cell phone numbers are risky and haven’t performed well. Your business is liable because an owner or employee is the plan’s administrator and they selected the third party. Your company has a fiduciary responsibility to find a reputable third-party administrator who acts with prudence on employees’ behalf.
When the lawyer serves your business with the lawsuit, you’ll file an insurance claim with your fiduciary liability insurance carrier. The insurance carrier will hire an attorney to defend you and pay a settlement if needed. It’s essential to recognize that honest mistakes happen and things can go wrong with so many moving parts in an employee benefits plan. This is why insurance is so important. FYI Setting specific policies can limit your liability. For example, while you may want to help employees make good retirement investment choices, make it a rule not to offer any investment advice on retirement accounts.
You hired a third party to administer the plan. However, this third party has a history of making high-risk investments for the plan. When looking at their retirement options, an employee sees that the funds list of saudi arabia cell phone numbers are risky and haven’t performed well. Your business is liable because an owner or employee is the plan’s administrator and they selected the third party. Your company has a fiduciary responsibility to find a reputable third-party administrator who acts with prudence on employees’ behalf.
When the lawyer serves your business with the lawsuit, you’ll file an insurance claim with your fiduciary liability insurance carrier. The insurance carrier will hire an attorney to defend you and pay a settlement if needed. It’s essential to recognize that honest mistakes happen and things can go wrong with so many moving parts in an employee benefits plan. This is why insurance is so important. FYI Setting specific policies can limit your liability. For example, while you may want to help employees make good retirement investment choices, make it a rule not to offer any investment advice on retirement accounts.