Retirement Plan Fiduciaries Must Adjust to New Era of ERISA Litigation: How a Recent SCOTUS Ruling and $39M Jury Award Changed the Game
A Supreme Court decision in April made it easier for plaintiffs to keep ERISA prohibited transaction claims in play longer, and just days later a rare ERISA trial resulted in a huge win for a class of 401(k) plan participants . What do retirement plan sponsors and fiduciaries need to know about this new era of ERISA litigation? We’ll break it all down and give you some best practices to stay ahead of a potential new wave of litigation risks. Snapshot of ERISA Fiduciary Rules Fiduciary Status. Generally, a person is a fiduciary of an ERISA-governed plan if they (1) exercise discretionary authority or control over plan management or plan assets; (2) have discretionary authority or responsibility for the plan’s administration; or (3) give paid investment advice to a plan (or have any authority or responsibility to do so) . Fiduciary Duties. Plan fiduciaries must follow certain principles of conduct when running the plan, including by acting prudently and solely in the interest ...