Fiduciary Risk Mitigation


Employee Benefits Litigation - Fiduciary Risk Mitigation

Employee benefits litigation continues to rise, and most cases focus on plan fiduciaries’ misconduct. Importantly, this does not necessarily involve intentional misconduct. Rather, many cases have resulted in substantial liability for fiduciaries, despite the fact that they thought they acted properly in connection with their plan responsibilities.

When counseling employers about mitigating their risk of incurring personal liability in this area, I help them answer questions such as:  

  • Am I a fiduciary under ERISA?
  • What legal duties does ERISA impose on fiduciaries?
  • Who should serve on our retirement plan committee(s)?
  • How can I minimize my risk of exposure to fiduciary liability?

I also help clients to prepare for a potential DOL audit. In this regard, I have seen DOL agents recently begin posing the following questions to plan fiduciaries:

  • What is your educational background?
  • Why do you think you are qualified to serve the plan in a fiduciary role?
  • What relevant training have you attended over approximately the past two years?

I would welcome the opportunity to discuss your or your clients’ questions about this.   Please contact me at 303-727-0510.