Jump to content

Are government plans subject to fiduciary liability arising out of Y2K


Guest Sara
 Share

Recommended Posts

Guest Sara

It is my understanding that fiduciary liability for Y2K problems applies to ERISA plans. Is there a counterpart which subjects government plans to Y2K fiduciary liability? Thanks!

Link to comment
Share on other sites

Guest CVCalhoun

The only federal fiduciary standards to which governmental plans are subject are contained in Internal Revenue Code sections 401(a)(2) and 503(B). Those sections speak of using plan assets solely in the interests of plan participants and beneficiaries, and have been held to impose fiduciary standards as well as self-dealing rules.

However, the main source for fiduciary rules for governmental plans is state law, including state constitutional provisions. Because governmental plans are not covered by the provisions of ERISA which preempt state law as to private plans, they are subject to a wide variety of fiduciary regulation by applicable state law.

---------------------------

Employee benefits legal resource site

Link to comment
Share on other sites

Guest PeterGulia

The government plan sponsor may want the Attorney General's advice on whether the plan fiduciaries are protected by sovereign immunity.

------------------

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...