See, hear, speak no evil - and breach fiduciary duty
Article Abstract:
ERISA holds that a retirement plan trustee is personally liable for failing to exercise care, skill, prudence and diligence in administering a plan if he was aware of actions that may have concealed discovery of the plan's insolvency but clearly did not contribute to it. ERISA requires fiduciaries to investigate suspected anomalies and possible problems. This is illustrated in the case of John Ayers, trustee of the Spartan Associates Profit Sharing and Retirement Plan and Trust.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1996
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Cases highlight new areas of fiduciary liability
Article Abstract:
Two cases involving violation of ERISA are discussed. In the first case, the plan sponsor was found guilty of being involved in a prohibited transaction based on the structure of its early retirement incentive program. The other case presents the plan sponsor's failure to fulfill its fiduciary duty by amending a plan in a manner inconsistent with suggestions it had made to retirees.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
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Significant rulings affect ESOP trustee decisions
Article Abstract:
The Third Circuit Court of Appeals ruled in the 'Moench v. Robertson' case that employee stock ownership plan (ESOP) participants can take legal action against ESOP trustees if it can be proven that the latter's continuing investment of plan assets exclusively in employer stock is ill-advised. The court decision emphasizes the fiduciary obligations of trustees.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
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