The Employee Retirement Income Security Act (ERISA) ensures that private employers who make promises to employees must keep those promises when it comes to pensions and other benefits. A failure to fulfill a promise related to retirement security can be devastating to an employee’s financial well-being, so employers have a fiduciary duty and are held to the highest standard. They are required to ensure that pensions are funded, effectively managed and that all decisions are made in the employee’s best interests. Overall, employees should receive benefits promised to them.
As part of the fiduciary obligation plan sponsors have to their workers, there is a requirement that plans be continually “monitored” by plan managers so investments that are imprudent may be removed. Fiduciaries who manage pension funds thus must continue to ensure that investments they have purchased with employee money are wise investments.
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Determining if an ERISA claim can arise due to lack of monitoring is a complex process. Zamansky LLC has the necessary legal experience to help clients evaluate whether they have a claim and to prove their case against a plan fiduciary who failed them. Our ERISA attorneys have more than half-a-century of collective legal experience within the financial industry and have decades of experience representing clients in claims arising under ERISA.
ERISA Claims Arising from Monitoring Failures
In Tibble v. Edison International, the Supreme Court addressed the extent of the independent duty that ERISA imposes on fiduciaries to continue monitoring retirement investments in managed plans. A plan manager had asserted he was protected from litigation because the statute of limitations had passed since the funds that were raising complaints had been purchased more than six years prior. The plaintiffs asserted the fiduciary breach arose from the purchase of those particular funds because they were higher-fee retail-class funds when lower-fee institutional class funds were available for purchase.
The court determined that the statute of limitations was not time barred because ERISA fiduciaries have a continuous obligation to monitor investments and discontinue those that have become imprudent. The express recognition of the duty to monitor makes clear that those with fiduciary duties under ERISA may not allow the funds being managed for employees to operate on auto-pilot. Continuous monitoring of funds is critical to ensure that employees are being well-served.
Failure to monitor investments on an ongoing basis can be costly, and employees should not suffer because their plan managers fail to do their jobs right. An attorney can represent employees in ERISA class actions and other litigation arising from monitoring failures – let Zamansky LLC help you.
Getting Legal Help From an Experienced ERISA Attorneys
When your employer promises you retirement security and then the pension plan that is supposed to provide that security is mismanaged, the consequences can be dire. You don’t deserve to bear these financial burdens caused by your plan sponsor’s failures.
Contact Zamansky LLC today to speak with an ERISA lawyer who can help you to pursue a claim based on ERISA monitoring failures. Our experienced legal team is ready to help you put together the strongest possible case to show that your plan sponsor or managers should be held responsible. If you can prove a violation, you may be entitled to compensation for losses caused by the failure to monitor.