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Financeware, Inc.
Employers May Now be at Risk of Being Sued Over 401k Costs
May 24th, 2008
According to a recent Supreme Court ruling, employers may now be at risk of being sued by individual 401(k) participants. Justice John Paul Stevens ruled that ERISA "authorize[s] recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account." Since excessive 401(k) fees can certainly decrease the value of a participant's plan assets, this ruling may put many employers at risk of potential lawsuits. "Part of an employer's responsibility as a plan trustee is to know the total cost of the company's 401k program and whether or not such cost is reasonable under ERISA," states David B. Loeper, CEO of Financeware, Inc. and author of...
Source: Law & Health Weekly (2008-05-24)
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