Hidden danger; unwary attorneys may face liability under ERISA
Article Abstract:
ERISA issues can arise in many areas seemingly unrelated to employee benefits such as estate planning, family law and business transactions. ERISA provides a cause of action against fiduciaries for employee benefit plans who breach their duties under the act. Attorneys will probably shy away from being ERISA fiduciaries since they are jointly and severally liable for losses of plan assets and have an affirmative obligation to discover breaches of other fiduciaries and report them. Moreover, attorney malpractice insurance tends not to cover ERISA fiduciary claims.
Publication Name: ABA Journal
Subject: Law
ISSN: 0747-0088
Year: 1993
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Sixth Circuit adopts non-statutory affirmative disclosure obligation for ERISA fiduciaries
Article Abstract:
The US 6th and 7th Circuit Court of Appeals in Krohn v. Huron Memorial Hospital and Ames v. American National Can Co. provided opinions which contribute to the conflict of US Court of Appeals opinions regarding the affirmative disclosure duties of ERISA fiduciaries. The 6th Circuit applied an affirmative duty to inform, while the 7th Circuit refused to due so. The US Supreme Court had previously applied a negative duty not to misinform employee benefit plan participants, but did not address the scope of affirmative disclosure.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1999
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Balancing prudence and risk; under ERISA, pension plan investors must focus on participants' goals
Article Abstract:
Pension plan investment mgrs and their attorneys often eschew so-called risky investments in an effort to remain prudent, but doing so overlooks risks the courts have noted. In at least one major case, the court foudn a fiduciary breach for ignoring the risk of loss due to inflation, and the spread or interest rate risk. The Employee Retirement Income Security Act does not focus purely on the risk of loss of principal, and low investment returns can spur plan beneficiaries to sue a plan's trustees.
Publication Name: ABA Journal
Subject: Law
ISSN: 0747-0088
Year: 1996
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