ERISA 404(c) - One Error Means No Protection?

[Christine Roberts]

Does anyone know the citation to the rule that if an employer does not comply in full with all aspects of ERISA Section 404©, then the exclusion from fiduciary liability is not available??

[Alf]

DOL regulation 2550.404c-1 (a)(1), (d)(1), and (d)(2) say that a plan that meets 404c will have protection, but I can't think of anything that states it the way you want - that you don't have protection if you don't follow the rules - but that follows, doesn't it?

[Erik Read]

Actually - I believe all the reg's say "May be relieved of liability" the reg's don't gaurantee it. That's one of the big issues with 404©. It's open to interpritation by the field office and the DOL. Depends on the one piece you may be missing.

You're correct though in that there isn't a section that says if you don't meet the requirements you won't be protected.