Duties as an Employer with a Retirement Plan

09.12.2016

We were recently interviewed by The Daily Record (Rochester, NY) regarding current lawsuits filed against employers in relation to their handling of their retirement plans. The suits revolve primarily around the fees charged by, and the performance of, plan administrators chosen by employers for the retirement plans.  While these theories are not new, the number of cases has increased due to the United States Supreme Court’s Decision in Tibble v. Edison International that employers have a continuing duty to monitor the performance of plan administrators and the fees charged. It is crucial, therefore, for employers to have an established practice for picking plan administrators, document the execution of that practice, benchmark fees, continually monitor performance, and be sure to have adequate insurance in case there is a mistake.