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For Businesses – Business Organizations and Transactions

ERISA and Retirement Plan Compliance

HELPING RETIREMENT PLAN FIDUCIARIES COMPLY WITH ERISA

Under the Employee Retirement Income Security Act of 1974 (ERISA), a fiduciary of an ERISA retirement plan has a duty to act prudently and in the best interests of the plan participants. This includes a duty to keep the plan in compliance with all applicable federal regulations. If a fiduciary fails to update the plan to ensure that it is in compliance with new federal regulations, the fiduciary may be held personally liable for any losses that result.

There are a number of ways in which a fiduciary may fail to update a plan to ensure that it is in compliance with new federal regulations. For example, a fiduciary may fail to:

  • Notify plan participants of changes in the law
  • Make necessary changes to the plan documents
  • Implement changes to the plan’s investment policies
  • Monitor the plan’s investments to ensure that they continue to be in compliance with the law

If a fiduciary fails to update a plan to ensure that it is in compliance with new federal regulations, the fiduciary may be held personally liable for any losses that result. This is because the fiduciary has a duty to act prudently and in the best interests of the plan participants. By failing to update the plan, the fiduciary has breached their fiduciary duty and may be held liable for the losses that result.

The amount of liability that a fiduciary may face for failing to update a plan to ensure that it is in compliance with new federal regulations will depend on a number of factors, including the severity of the breach, the amount of losses that resulted, and whether the fiduciary acted with intent to harm the plan participants. In some cases, a fiduciary may be held liable for the entire amount of losses that resulted from the breach. In other cases, the fiduciary’s liability may be limited to a portion of the losses.

It is important for fiduciaries of ERISA retirement plans to be aware of their responsibilities to keep the plan in compliance with all applicable federal regulations. Fiduciaries should take steps to ensure that they are aware of any new regulations that may affect their plans and that they take the necessary steps to update their plans to comply with those regulations. By taking these steps, fiduciaries can help to protect themselves from personal liability for losses that may result from their failure to update their plans.

The attorneys of Maselli, Mills & Fornal, P.C. can assist plan fiduciaries in fulfilling their responsibilities and avoiding liability. We help fiduciaries to: We help fiduciaries to:

  • Stay up-to-date on changes in the law that may affect theplan.
  • Review the plan documents regularly to make sure that they are in compliance with the law.
  • Implement changes to the plan as soon as possible after new regulations are adopted.
  • With the assistance of the plan’s financial advisor, monitor the plan’s investments to make sure that they continue to be in compliance with the law.

The attorneys at Maselli, Mills & Fornal, P.C. are here to help with your business with ERISA compliance and its other legal needs.

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