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 !!
Why Should Small Business Owners Care About ERISA?
Posted By Jennifer McKibben
April 29, 2013 (3:11 pm) In ERISA
There’s a misconception out there that ERISA compliance is really more important for larger businesses. But the fact of the matter is that ERISA has significant implications for organizations of all sizes.
So, Tom Clark of FRA/Plan Tools notes, it’s vital for small business owners and plan administrators to understand five reasons why they need to pay attention to it, too:
- It’s their money too.
- They’re personally liable.
- The DOL doesn’t care if they have 10 employees or 10,000.
- It’s easy to comply if you get the right help.
- Better outcomes for them and their employees.
In most cases, compliance with ERISA by a small business plan will result in better retirement outcomes for employees. If employees recognize this, it may lead to increased loyalty and productivity as a result of feeling that their employer is looking out for them.
Article taken from NAPA Net – http://www.napa-net.org/URL to article: http://www.napa-net.org/news/technical-competence/erisa/why-should-small-business-owners-care-about-erisa/ Tom Clark http://blog.fraplantools.com/why-a-small-business-owner-should-care-about-erisa/