Employee defined benefit and defined contribution retirement plans as well as non-qualified benefit and compensation programs have become increasingly complex. Anyone serving as a Plan Sponsor for a Qualified Retirement Plan or other employee benefit plans assumes a certain level of risk.

A fiduciary is a person to whom property is entrusted for the benefit of another. A fiduciary can be a director, officer, employee or other retained person(s). 

Under the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries can be held personally liable for breach of their responsibilities in the administration or handling of employee benefit plans.

A Fiduciary's Exposure to Claims/Suits

• Changes in benefit levels or elimination of existing plans.
• Offering of "non-qualified benefit plans," many of which are not subject to ERISA. This poses a unique insuring problem since the basis of Fiduciary Liability insurance is "...plans subject to ERISA..."
• Employer "direction or encouragement" and "coercion" in the selection of health care providers.
• Merger or acquisition situations involving benefit plans.
• 401(k) plans. Liability can arise from the number of investment choices offered to employees, the expenses to administer the plan, the long-term investment returns of the plan, the amount of employee input as to plan design and administration, and the use of Third Party Administrators and how frequently these services are competitively bid on.

Answers about the plan, including eligibility, options, enrollment, customer service and more.