What Type of Risk
Might your Plan be Facing?
In January 2022, SCOTUS unanimously decided an ERISA fiduciary duty case, Hughes v. Northwestern University. The ruling confirmed that establishing and offering a broad range of investment options for a participant-directed retirement plan does not ensure that a plan fiduciary has met its duty of prudence under the Employer Retirement Income Security Act of 1974 (“ERISA”). The Supreme Court’s decision will likely allow for the continued high volume of lawsuits against 401(k) and 403(b) plans alleging excessive investment and record keeping fees.1
A 401(k) advisor should help employers design, develop and maintain the fiduciary policies that evaluate, monitor and document all aspects of the Plan. A 401(k) advisor should also provide a financial wellness program that fully educates employees.
PensionmarkMeridien is a full-service retirement plan advisor. We can help; improve participant outcomes, navigate change and reduced plan sponsor workloads. We provide fiduciary governance, education, relationship management and all the support your plan needs.
Citations:
1. https://www.jdsupra.com/legalnews/in-which-direction-does-hughes-v-2763426/
Pensionmark® Financial Group, LLC (“Pensionmark”) is an investment adviser registered under the Investment Advisers Act of 1940. Pensionmark® is affiliated through common ownership with Pensionmark Securities, LLC (member SIPC).