Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Law Firm Partnership & Benefits ReportKickerFeaturesTopicsCommercial LawSectionsNewsLJN Newsletters

Expanding Fiduciary Exposure Under ERISA

By Edward A. Marshall
November 23, 2011

Over the past five years, fiduciaries overseeing 401(k) plans have faced an unwelcome barrage of litigation regarding the fees associated with plan investments and administration. Among other things, the plaintiffs' bar has targeted ERISA fiduciaries with lawsuits alleging that the fees paid to investment managers and service providers were “excessive,” imprudently evaluated, and inadequately disclosed to plan participants. Given the sheer size of certain corporate plans, the liability exposure in class actions making such claims can be frightening, even when the per-participant “loss” flowing from an allegedly imprudent fiduciary decision is relatively miniscule.

Thankfully, smaller plans ' such as those administered by most law firms ' have (to date) received scant attention from the plaintiffs' bar. That's the good news. The bad news, however, is that the same pressure to investigate and disclose fees associated with 401(k) plans is now coming to plan administrators in a different form ' new Department of Labor (“DOL”) regulations codified at 29 C.F.R. ' 2550.404a-5.

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability Image

This article explores legal developments over the past year that may impact compliance officer personal liability.