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In modern American society, many employees rely on their 401k plan as an important income source after they retire. However, some retirees have seen their 401k plans depreciate in value due to poor investment choices by their employer.
McDonald’s is one of the largest and most successful companies in America and provides generous retirement options through McDonald’s 401k plan. According to the company’s policy, their employees receive superior benefits and offer their employees the opportunity to invest in the company.
Unfortunately, it has been suspected that this company has conducted bad investment decisions, which caused their employees to lose value in their McDonald’s 401k plan. Some 401k legal experts believe that McDonald’s has conducted this unscrupulous behavior since 2007, which may lead to legal action. A McDonald’s 401k plan class action lawsuit investigation has been launched into the potential mismanagement of McDonald’s 401k plan investments.
Overview of McDonald’s 401k Policy
According to the company’s website, McDonald’s offers financial planning and has various money management programs such as the Profit Sharing and Savings Plan. This option allows an employee to save from 1% to 50% of their pay on a tax-deferred basis in the McDonald’s 401k plan, with the company matching this by paying eligible employees three dollars for each one dollar paid to the first 1%of the pay they contribute. Eligible employees can also receive a discretionary profit sharing match of 0% to 4% based on the first 1% of pay they send to their McDonald’s 401k plan.
McDonald’s states they want their employees to be 100% vested in the company with not just their job but also in the trust they place in the company for their financial future. The terms of the McDonald’s 401k plan mean that for every 1% an employee contributes to the company, they receive a 300% match from McDonald’s. There is also an option for employees to purchase McDonald’s stock, which allows for the possibility of income growth and gaining an ownership portion company.
It is important to note that companies are not obligated to contribute to a 401k plan and can change their 401k plans at any point in time. Experts explain that corporations that are trying to attract the most highly-skilled or well-educated employees often have some of the best retirement plans. McDonald’s started offering its substantial retirement plans in 2004 after finding it was an effective way to keep employees invested in the company.
401k Plan Mismanagement
Under federal law, McDonald’s and other large corporations have the civil responsibility to act ethically and conservatively in regards to managing their employees’ 401k plan. These companies must also avoid conflicts of interest for their employees’ financial future, and they must diversify investments.
If these companies fail in their duty to act in the best interest of their employees’ 401k plan, and could find themselves vulnerable to a potential Employee Retirement Income Security Act of 1974 (ERISA) lawsuit. ERISA sets minimum standards for the pension and healthcare plans of American companies and ensures the financial security of the employees.
Under ERISA, the parties responsible for overseeing the company’s employee benefits plan are required to follow specific federal guidelines. These guidelines require fiduciaries to act in the best interest of the participating employees by providing the necessary information about the plan and providing the employees with a grievance and appeals process.
A class action lawsuit investigation has been launched into claims that McDonald’s may have made poor investment choices for its 401k plan, in violation of ERISA. As a result, employees may not be earning as much money as they should on their McDonald’s 401k plan investments. It is important to note that no lawsuits have been filed yet.
Join a Free McDonalds 401k Class Action Lawsuit Investigation
A class action lawsuit investigation is currently underway to pursue the possibility of taking legal action against McDonalds for potentially violating ERISA. If you are a McDonalds employee who signed up for a McDonalds 401k account since 2007, you may have a legal claim.
