Fiduciary and Litigation Risk in Today’s 401(k) and 403(b) Plans
Many employers may not be fully aware, but there are increasing fiduciary, compliance, and litigation risks associated with today’s 401(k) and 403(b) plans.
Many employers may not be fully aware, but there are increasing fiduciary, compliance, and litigation risks associated with today’s 401(k) and 403(b) plans1. For those serving in a fiduciary capacity for these plans, the level of personal accountability being assumed can be significant and misunderstood.
Key Takeaways:
- Litigation of benefit plans over excessive fees remains a substantial exposure for sponsors of 401(k) and 403(b)1 plans.
- As a result, employers are witnessing increased risk and fiduciary liability insurance costs.
- Pooled Employer Plans are a potential mitigation strategy, while providing less work and better retirement outcomes.
1 403(b) plans are utilized by the not-for-profit sector