Navigating 401(k) and 403(b) Plan Litigation Risks: Key Issues for Sponsors and Administrators

This CLE webinar will discuss the wave of retirement plan litigation targeting 401(k) and 403(b) plans and practical tips to minimize litigation risks. The program will provide an overview of litigation trends and developments, defense perspective and procedural considerations, compliance issues and practical tips for plan sponsors and fiduciaries. The panel will also offer techniques in avoiding and managing lawsuits stemming from investment offerings, fees, and more.

Employer sponsored 403(b) and 401(k) plans continue to face significant challenges affecting employee benefits counsel, human resources and benefits professionals and retirement plan administrators. Employers and their plan fiduciaries are increasingly the subject of a barrage of class action lawsuits alleging breach of fiduciary duty for an increasing list of plan responsibilities including excessive fees, imprudent selection and monitoring of investment options, use of forfeitures and other plan related duties and responsibilities.

Recent cases include claims that fiduciaries should have leveraged the plan's size using economies of scale to negotiate lower-cost share classes of plan offerings and lower-cost administrative and investment management services; chosen less costly or better-performing investment options for the plan; and pursued reduced recordkeeping fees. Furthermore, recent claims also allege the fiduciaries selected investment options that consistently underperformed.

Plan sponsors of 401(k) and 403(b) plans must consider the impact of recent regulatory and litigation developments as they are establishing governance structure, documenting processes, negotiating fiduciary liability insurance and assessing administrative compliance.

Listen as our panel discusses recent retirement plan litigation involving 401(k) and 403(b) plans. The panel will discuss the current state of the litigation, as well as practical tips to help prepare for, mitigate, and/or avoid these types of class action lawsuits.