What Is Fiduciary Responsibility for 401k?

The Employee Retirement Income Security Act (ERISA) is a federal law requiring that companies properly manage the retirement plans of their employees. Companies have a fiduciary responsibility toward their employees, and ERISA sets the guidelines for that responsibility.

What Does “Fiduciary Responsibility” Mean?

Fiduciary responsibility is the duty to act in a way that is financially beneficial to another person or entity. Employers may have a fiduciary duty toward their employees in the management of their retirement plans like a 401(k).

Unfortunately, some companies may not be managing their employees’ retirement plans adequately under the standards set by ERISA. A 401(k) class action lawsuit investigation has been launched, looking for California residents working for companies with 500 or more employees with a 401(k) plan that may have been subjected to ERISA violations.

What Are the Requirements of ERISA?

The Employee Retirement Income Security Act (ERISA) was passed in 1974 to help protect Americans’ retirement funds. ERISA sets the standard that employers must meet for providing benefits and funding the plan, and holds companies accountable for the management of these plans.

Violations of ERISA can include breach of fiduciary duty, excessive fees, mismanagement, and failure to adequately fund. These violations can result in an employee not having the full extent of the funds that they expect from their retirement plan, which can have serious financial implications for their future.

What are Employers’ Fiduciary Responsibilities for 401(k) Plans?

Employers have several duties when it comes to a 401(k) fiduciary, including:

• Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them
• Carrying out their duties prudently
• Following the plan documents (unless inconsistent with ERISA)
• Diversifying plan investments
• Paying only reasonable plan expenses

If your retirement plan has been mismanaged, this may mean that you do not have the funds that you expected, and you may be able to sue for “breach of fiduciary duty.”

Joining a California 401(k) Lawsuit Investigation

Filing a fiduciary breach lawsuit can result in the return of profits made off of plan assets, as well as additional penalties and even punitive damages when applicable.

To file a lawsuit over breach of fiduciary duty, a plaintiff must show that the defendant had a fiduciary duty to the plaintiff which was breached in some way, directly leading the plaintiff to suffer damages.

If you are a California resident who works for a company with 500 or more employees, and you suspect that your 401(k) retirement plan was subject to mismanagement, breach of fiduciary duty, or other ERISA violations, you may be able to join this class action lawsuit investigation.

Filing a lawsuit can make already complicated financial matters seem even more intimidating, but Top Class Actions makes the process easier by connecting you with an experienced retirement attorney that can help you determine if you have a claim.

Join a Free California 401k Class Action Lawsuit Investigation

You may qualify for this 401k class action lawsuit investigation under the following circumstances:

• You live in California;
• You are employed by a company with 500 or more employees;
• You participate in a 401k plan or another pension plan; and/or
• You have been the victim of an ERISA violation such as excessive fees, mismanagement, breach of fiduciary duty, and/or failure to adequately fund.

If you are unsure if you’ve been the victim of any 401k violations, an experienced retirement plan attorney can assist you.

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This article is not legal advice. It is presented
for informational purposes only.