Caution: Next Wave of 401(k) Lawsuits Looming; Do You Have a Lifeline?
In September, 2006, a plaintiff's law firm out of St Louis, Missouri, filed seven lawsuits alleging fiduciary breaches with regard to 401(k) plan revenue sharing arrangements. (See Ice Miller e-Bulletin, Plan Sponsors Sued Nationwide Over 401(k) Fees and Revenue Sharing: Could You and Your Plan Be At Risk?)
It now appears that a second wave of these lawsuits is imminent. The same plaintiff's law firm has been aggressively pursuing participants and retirees in 401(k) plans by placing ads that name specific companies online and in newspapers across the country. Could your company be next?
Your best defense? . . . a good offense!
- Official documentation establishing a Retirement Plan or Investment Committee
- An Investment Policy Statement
- Annual Investment reviews in conjunction with the Investment Policy Statement
- Documentation of annual investment reviews
- Annual fee analysis including complete revenue sharing disclosure
- File documentation of fee analysis
- Periodic market review of plan
- Complete fiduciary audit to identify any weaknesses
Questions? Call your Ice Miller Benefits attorney or, Retirement Plan Consultant.