Protecting the personal assets of plan fiduciaries
Recent Judgements
With the enactment of the Employee Retirement Income Security Act (ERISA) in 1974, fiduciaries assumed new responsibilities relating to the management and administration of employee benefit plans.
ERISA mandated that fiduciaries may be personally liable for breach of certain responsibilities or duties imposed upon them under the law. Today, there’s a greater need than ever for Fiduciary Responsibility Insurance.
Remember–ERISA law mandates that fiduciaries may be held personally liable for breaches of certain duties or responsibilities. Consider a few of the most recent cases:
$439,560 Judgment against the Trustees of a profit sharing plan accused of improperly concentrating plan investments in a single industry and investing a high proportion of the plan assets in a limited number of stocks.
$550,000 Awarded to plan participants after administrators were accused of improperly investing plan assets in a residential development loan which defaulted.
$230,000 Judgment against a health plan trustee who allegedly failed to monitor the performance of its third party administrator.
$236,000 Settlement reached after trustees were accused of failing to adequately investigate the propriety of using life insurance polices as investments.
$72,000 Awarded to employees after administrators of a pension plan failed to sufficiently communicate the early withdrawal penalties and excessive surrender charges of their life insurance policies.
