Fiduciary Liability

 

Fiduciary Liability

    There has been a lot of red in the stock market lately, and that could mean more trouble for employers than just their investments. Under ERISA, a fiduciary, which is someone who manages benefits plans must act within the best interest of the plan participant. Doing this allows the fiduciary to avoid lawsuits and liability claims having to do with any benefit discrepancy the policyholder may have. But what happens when an employee’s retirement plan takes a significant hit, and they point their finger at their employer?

If an employer helps manage assets for an employer and fiduciary liability claims ensue, not only is the company at risk, but your personal assets as well. With the increase in employer lawsuits in recent years, I would not be surprised to see an increase in fiduciary lawsuits as well. Especially if the employer is acting as the fiduciary or has any involvement in employee asset management. Taking care of money for others, and the requirements you are having to abide by under ERISA are no easy task. Let alone having to worry about liability claims, even if you are doing the best you can.

While many retirement plans are down YTD, plan participants may be looking to place blame somewhere. Making sure the fiduciary you are associated with is acting in good faith may save you from accepting liability for stock market losses, or other asset losses that may occur. With so many ways that you and your personal assets can be exposed to fiduciary liability, it is important make sure that you avoid being liable for unnecessary risks.

 G. Kevin Nemith ,  Hilb Group Delaware  

Xavier Bodnar , Hilb Group Delaware

Post by: 

G. Kevin Nemith CIC. CRM  President, Agency Leader for Hilb Group Delaware, 

 Xavier Bodnar Benefits Broker Hilb Group Delaware 

knemith@hilbgroup.com

xbodnar@hilbgroup.com

Top 20 insurance brokers and risk managers in the USA. 

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