Small Business 401k, Big Plan Fees
The Deloitte study shows that most small business owners are swimming naked, legally speaking. No wonder lawsuits against 401k plan sponsors for breach of fiduciary duty are ballooning. Even for small business owners with less than 100 employees, there are ways to keep plan costs below 1%.
Supreme Court Ruling Allows Individuals to Recover
Individual 401(k) Account Losses
Section 502(a)(2) of ERISA provides that a “civil action may be brought … by a participant … for appropriate relief under section 1109 of this title.” Section 1109 states that “a fiduciary with respect to a plan who breaches any … duties imposed upon fiduciaries … shall be personally liable to make good to such plan any losses to the plan resulting from each such breach.” This provision had been previously construed to limit the right to bring claims under Section 502(a)(2) to those alleging a loss to the plan as a whole, rather than to redress individual losses.
Plan Sponsors, YOUR risks of lawsuits
are NOT from existing employees,
but from disgruntled employees
fired two weeks ago,
two months ago or…
two years ago !!