Exclusively from Foa & Son
Under the provisions of the Employee Retirement Income Security Act (ERISA) trustees of retirement plans face a potential for personal liability arising from acts or omissions in their role as fiduciaries for those plans. Many of our readers are in this role, so a recent Supreme Court ruling could personally affect you.
Succinctly, the case had to do with allegations of excessive fees in investment funds selected for participants in a retirement plan, and whether the six year statute of limitations for such actions started when the employer initially selected those funds, or later. The employer argued that the initial selection, which was more than six years ago, precluded liability.
The Court said no, that the employers and fiduciaries have “…a continuing duty to monitor investments and remove imprudent ones.”. Since they determined that the duty was a continuing one, the statute of limitations did not apply.
This decision slipped by without much notice, but you can bet the plaintiff’s bar noticed. If you are a fiduciary and you haven’t taken a look at the plans you are responsible for in a while, now is the time to do that. You should also review your fiduciary liability policy; we can help you with that.