Sunday, July 12, 2009
401(k) Plans Carry Frequently Ignored Fiduciary Duties for Plan Administrators
Last year the U.S. Supreme Court held that a 401(k) plan participant could sue for an alleged breach of fiduciary duty as long as the allegations related to the proper management, administration, and investment of asset plans. This past Friday the St. Louis Business Journal published an article reviewing the millions of dollars in losses suffered by the 401(k) plans of dozens of large St Louis employers in 2008. Some of the plans noted in the article had losses exceeding 30%. While a mere substantial loss alone, particularly in such a difficult economic and market environment, is not a sufficient basis for a law suit, it may (hint-should) prompt you to have a professional take a look at your plan to make sure it is and was being administered diligently, prudently, and consistent with your and your other plan participants' best interests. Cosgrove Law, LLC works with investment professionals on a variety of matters, including the legal and financial assessment of 401(k) plans--plans in which rest your hopes for a decent retirement.