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.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Trusts, Funds, Trusts, and Other Financial Vehicles, Fiduciary Regulations, Banking law, Fiduciaries

---

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.

Breach of trust

---

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.

Employee stock ownership plans

Similar abstracts:

• Abstracts: CSR code of conduct in sugar industry. Call center guidelines agreed
• Abstracts: Case digest. Ban on recruitment of primary carers was unjustifiable indirect sex discrimination. Deliberately misleading answers to questionnaire assist inference of discrimination
• Abstracts: Failure to pay bursary during maternity leave is not sex discrimination. Dismissal of an Indian woman is both sex and race discrimination
• Abstracts: Retirement plans in bankruptcy - who gets the assets. Pension plans - vouchers - noncash benefits - breach of fiduciary duty - failure to fund plan
• Abstracts: Five keys to managing derivatives. Strategies for managing derivatives exposure. How do pension funds monitor risk?

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.