A recent article in InvestmentNews highlighted recent 401(k) litigation brought against small plans. While this type of litigation was traditionally brought against fiduciaries of large plans, plaintiffs’ firms have begun to target plans as small as $9 million. These suits are typically settled, rather than decided on the merits, but the risk of litigation has instilled fear and sensitivity in plan sponsors. One of the best defenses is a prudent process.
George Michael Gerstein advises financial institutions on the fiduciary and prohibited transaction provisions of ERISA. As co-chair of the fiduciary governance group, he assists clients with tracking, and understanding, the numerous fiduciary developments at the federal and state levels, including the rules and regulations of governmental plans. He also advises clients with respect to the fiduciary duty implications of ESG investing.