In recent years financially troubled companies have begot financially troubled retirement plans which have begot ERISA lawsuits. The resolution of these lawsuits teaches important lessons for plan fiduciaries. The law firm of Gardner Carton & Douglas comments on these lessons in their July 2006 HR Law/Employee Benefits Client Memorandum and reminds plan fiduciaries that:
- Executives can also be fiduciaries.
- Oversight responsibility means monitoring and, if necessary, replacing service providers.
- There must be proper and adequate communications with participants.
- There is a duty to disclose potential plan changes.
- Procedure prudence is the key.
The Memorandum in PDF format can be downloaded here.