In retirement planning, our “new normal” has turned out to be “never normal again,” thanks to a seemingly unending array of troublesome economic, global health, and political events that have dramatically disrupted retirement plans.
The past few years have introduced new concerns for businesses, administrators, and sponsors in protecting both themselves and their employees’ retirement plans. In a year that set all-time records for workplace class action lawsuit settlements, the top 10 ERISA settlements totaled $837 million last year, more than doubling 2020′s total of $380 million. And all indications point to a continued escalation of ERISA litigation. Let’s look at some of the factors informing this cascade of claims against employers and what measures business leaders and plan sponsors can take to protect themselves. The commercial insurance product which defends and protects employee benefit plan decision makers charged with administering plans is fiduciary liability insurance.
ERISA litigation is increasing
Under the Biden Administration, the U.S. Department of Labor (DOL) and other agencies have ramped up enforcement programs,…
