Jeff Mamorsky’s article provides important information that all plan sponsors, trustees, and plan counsel need to see.

The fiduciary duty of plan sponsors and trustees to check / verify the compensation (direct and indirect) being paid by the plan raises this question: How can they best do so? How can they independently verify whether the necessary information is being provided by the plan’s investment advisor and that it is complete, truthful, and not misleading?

An independently performed, protective review might be the best way to ensure that plan sponsors and trustees can protect themselves from potential claims arising from the possible negligence of, or intentional non-compliance by, service providers. Importantly, that’s a service we can help you arrange.

Companies with 401(k) plans (“plan sponsors”) and the trustees of such plans, individually, are being “blindsided” by class action lawsuits, claiming that they’ve breached their fiduciary duty to their plan’s participants. These cases are increasingly focusing on the investment-related actions (or inaction) by plan trustees. The damages, as in this case, can be huge.