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.
- 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