3-day Virtual Seminar

Protect Your Client's 401(k)/403(b) Plan From Fiduciary Litigation

Overview

This program will provide insight into the basis for the majority of fiduciary litigation both currently in the courts and closed, cases that have settled and those that were dismissed due to proper due diligence by plan fiduciaries.  Since inception in 2007 with a landmark case the class action suits against fiduciaries’ service in both 401(k) and 403(b) plans has grown exponentially with over 100 cases to date and growing.  The material will address the basis for the litigation, how to avoid liability and related fiduciary responsibilities. 

It will answer the question, “Who is a fiduciary and what are their responsibilities.”  It is clear from the history of cases currently in the courts and those that have settled that the nature of the claims has expanded, some of which were unsupported, others that result in conflicting opinions in the courts and others that provided additional claims for plaintiffs. 

In addition to the growing litigation the program will also delve into the rules for remittance of employee deferrals, issues related to auto-enroll plans and required disclosures in accordance with Department of Labor rules.  A key issue that can cause plan sponsors to inadvertently cause a fiduciary breach involves plan expenses.  Which expenses can be paid with plan assets and which expenses must be paid by the plan sponsor.  Those questions will be addressed with details to prevent fiduciary oversight. When appropriate, examples will be provided including benchmarking, a Guide to Vendor Services, mutual fund expenses, and late remittances of employee deferrals.  

Why you should Attend

If you are in a fiduciary position as part of your employer’s plan, an investment advisor or a plan sponsor it is imperative that you become familiar with the underlying issues that are the focus of the many cases brought to court over the past several years.  Understanding the issues is the key to avoiding becoming a defendant subjecting the plan and its fiduciaries to a seven-figure settlement or court directed payment to the plan participants.

Plaintiff’s counsel has recognized the attractive legal fees available for those cases that are resolved in favor of the plaintiff and as a result several law firms have joined the search for potential clients ranging from traditional 401(k) to universities and colleges’ 403(b) plans.  In some cases, the court ordered payment or settlement to be mid eight figures.
With this knowledge you will become a valued advisor or fiduciary as you provide the necessary services to the plan.

Areas Covered in the Session

• Definition of "Fiduciary"
• Fiduciary duties
• Participant disclosure
• Revenue sharing
• Investment policy statement
• Qualified Default Investment Alternative (QDIA)
• Target Date Funds
• Risk profile
• Timely deposit of employee deferrals
• Litigation issues
• Share classes
• Benchmarking
• The process
• Case summaries
  

Who Will Benefit

• All plan fiduciaries
• Investment Committee Members
• Named Fiduciaries
• lan sponsors and investment advisors