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ERISA Litigation: So What, Now What?

"Copying and pasting meeting minutes. Vague investment policies. Lack of prudent process around plan fees. Unclear protocols regarding the use of forfeited funds. These are all examples of sloppy retirement plan management practices that ERISA lawsuits have successfully used to make the case against plan sponsors. [Here are] pointers on leveraging lessons from litigation to ward off trouble -- and become an ever better fiduciary."

Many Retirement Plans Are Asset Rich But Cybersecurity Poor

"Not only is the cash in retirement accounts valuable, so too is the associated personal data.... While it is impossible to eliminate the cybersecurity threats to retirement plans, sponsors need to know that as ERISA fiduciaries, they are obligated to mitigate cybersecurity threats, and ... failure to mitigate cyber threats can result in fiduciary breach allegations which put the personal assets of sponsors at risk:"

Fiduciary Duties: Ask Why

"Decision making is a big part of being a plan sponsor, so whenever assessing plan options, it's imperative for plan sponsors to keep focused on their fiduciary obligations. Specifically, plan sponsors must 'be sure they understand any option before selecting it', and clarify the benefits and costs for participants."

Progress: Plan Fee Transparency

"[According to the GAO], the push for disclosing the fees associated with 401k plans over the past ten years is benefitting both participants and plan sponsors. Important work remains to be done, however, as the GAO also found that clearer, more readily understandable information is needed."

What About The Providers of The Provider?

"[As] ERISA fiduciaries, retirement plan sponsors are expected to use due diligence to vet providers, and that includes understanding how services are delegated and outsourced, which ... involves contracting wisely and asking the right questions:"

Beneficiary Designations: Essential Practices

"Encourage participants to review and update their beneficiary designations regularly, particularly following major life events such as marriage, the birth of a child, or a divorce.... Ensure that all beneficiary designations are complete and legible.... Clearly communicate the plan's default provisions for distributing assets if no valid beneficiary designation exists.  ... Clearly outline how divorce impacts beneficiary designations."

Plan Sponsors: What Not To Do

"EBSA offers this list of failures to steer away from: [1] Failing to operate the plan prudently and for the exclusive benefit of participants; [2] Using plan assets to benefit certain related parties to the plan ... [3] Failing to properly value plan assets at their current fair market value, or to hold plan assets in trust; [4] Failing to follow the terms of the plan ... [5] Failing to properly select and monitor service providers; [6] Taking any adverse action against an individual for exercising his or her rights under the plan ... [7] Failure to comply with ERISA Part 7 and the [ACA] ."

DOL Plan Audits Explained

"Plan audits are an important way the [DOL] ensures compliance with ERISA standards. Sometimes DOL plan audits are random, but errors, including mistakes with the submission of Form 5500, can trigger audits too. Here's an overview of the DOL audit process for plans, and tips to help plan sponsors gear up."

Is AI Spurring More ERISA Lawsuits?

"Even as the ERISA Industry Committee (ERIC) urges curtailment of the frivolous litigation disrupting plan sponsors across the country, hungry AI enthusiasts are offering to provide plaintiff attorneys with potential new cases, using plan data which can now be more quickly and deeply mined than ever."