Breaking News - 401(k) Liability
Over 40 years ago, the Employee Retirement Income Security Act of 1974 set in place requirements and regulations to manage those in fiduciary roles within each company in order to protect employees and their retirement investments. Within each company that offers employee benefits or retirement contribution plans, the individual employees that oversee and manage each plan are at risk and eligible to be held liable for numerous allegations. Risks include but are not limited to administrative inaccuracies, failure to properly manage and allocate funds and misguided counsel. As of late, the U.S. Supreme Court passed a new court ruling based on the Tibble v. Edison International dispute that furthers employee protection while also increasing those at risk, stating that those in fiduciary roles must, “monitor trust investments and remove imprudent ones. This continuing duty exists separate and apart from the trustee’s duty to exercise prudence in selecting investments at the outset.”
Although the Supreme Court’s ruling is valid and necessary, it also presents the need for further protection for those in fiduciary roles. Most Directors & Officers Liability policies have a fiduciary exclusion, making it significantly more important to review each policy and ensure sufficient coverage is maintained.
Fiduciary Liability Insurance is the most comprehensive coverage available to ensure protection in these types of situations containing both employee benefit liability insurance and 401(k) liability insurance. Swingle Collins & Associates partner with numerous reputable insurance carriers that provide Fiduciary Liability insurance and highly encourage companies who currently employ individuals in these roles to take action and make this investment.
Thank you to our client insurance litigation contact, Erika Bright, at Wick Phillips for ensuring that Swingle Collins & Associates and our clients remain up to date on important legal current events by bringing news such as this to our attention. Your continued support and expertise for both Swingle Collins and our clients is sincerely appreciated.
For further information on the Tiddle v. Edison International dispute please click here.