Understanding Workplace Retirement Plan Litigation

ERISA Fiduciary Duties

 Under ERISA, fiduciaries must:

• Act solely in the interest of plan participants and beneficiaries
• Carry out duties prudently and with the care of a prudent expert
• Diversify plan investments to minimize the risk of large losses
• Follow the plan’s governing documents in accordance with the law
• Avoid conflicts of interest that could harm the plan or its participants

Department of Labor Oversight

The U.S. Department of Labor (DOL) enforces ERISA and investigates potential violations. Participants also have the right to file private lawsuits to recover losses to the plan or enforce their rights under the plan’s terms.

• Charging excessive administrative or investment management fees
• Offering high-cost investment options when lower-cost alternatives are available
• Failing to monitor and replace underperforming investments
• Using plan assets for purposes that do not benefit participants
• Providing misleading information about plan benefits or investment options

Evidence may include:

• Plan fee disclosures and investment performance reports
• Expert analysis comparing plan costs to industry benchmarks
• Communications between fiduciaries and plan participants
• Internal meeting notes showing decision-making processes
• Testimony from financial and investment professionals

ERISA prohibits retaliation against participants who:

• Question the management of a retirement plan
• Request plan documents or fee disclosures
• File a complaint with the DOL
• Participate in an investigation or lawsuit

Retaliation can include termination, demotion, reduction in hours, or other adverse actions.

Potential remedies may include:

• Restoring losses to the plan caused by fiduciary breaches
• Removing fiduciaries who failed to uphold their duties
• Reforming plan terms to comply with ERISA
• Awarding attorneys’ fees and litigation costs to prevailing participants