Overview
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Duties of an ERISA fiduciary
6 mins
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Qualified default investment alternatives (QDIA)
31 mins
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Landmark case - What started the litigation
44 mins
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Plan administration issues
74 mins
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Course Description
Nestled within the chaos of 2020 there was a significant increase in 401(k) class action lawsuits. At the peak of the Great Recession (2009), there was a dramatic surge of 401(k) litigation and in the wake of COVID-19, we are seeing a similar troubling trend. Last year alone, the Employee Benefits Security Administration (EBSA) recovered over $3.1 billion in direct payments to plans, participants, and beneficiaries, illustrating a 310% increase from 2016 to 2020. Whether this is due to an abundance of “free” time, elevated financial stress or both, plan participants and sponsors are concerned about whether their investments and the expenses in their plans are appropriate. This unrest coupled with the maturing body of ERISA law and an emerging blueprint for filing and litigating cases is a likely cause for this most recent spike.
Fiduciary responsibilities should not be taken lightly. Employees who participate in the plan, as well as other plan fiduciaries, have the right to bring a lawsuit to correct fiduciary wrongdoing. The DOL also has the authority to enforce the rules through civil and criminal actions. Not only can the cost of governmental penalties associated with enforcement be high, but the costs associated with fixing the problem can also be significant. These normally involve legal, accounting, and other fees.
Under ERISA, fiduciaries are personally liable for plan losses caused by a breach of their fiduciary responsibilities and may be required to:
- Restore plan losses (including interest), and
- Pay the expenses relating to the correction of inappropriate actions.
Key topics covered in this online CPE/CE webinar:
- What is the basis for fiduciary litigation?
- What are the procedures necessary to identify breaches in fiduciary responsibility?
- How to establish an effective program of due diligence?
Learning Objectives
- To discuss the qualified default investment alternative (QDIA).
- To discuss employee deferrals and loan repayments.
- To identify the core issues on which litigation is based.
- To discuss the process necessary to satisfy the requirement for fiduciaries
- To explore the purpose of an investment policy statement.
Recommended For
- This CE webinar is recommended for CPA, EA, AFSP, PFS, CMA, and Other Tax and Financial Planning Professional who wishes to advise their clients to protect against costly litigation and settlements.
Who Should Attend?
- Accountant
- Accounting and audit managers/practitioners
- Accounts Director
- Auditors
- California Registered Tax Professional
- Certified Public Accountant (CPA)
- Compliance Managers
- Compliance Officers
- CPA (Industry)
- CPA - Mid Size Firm
- CPA - Small Firm
- Directors of Finance
- Finance Director
- Finance Pros
- Financial Planner
- Finanical Analyst
- HR Professionals
- Human Resources Manager
- Maryland Tax Preparers
- Oregon Tax Preparers
- Personal Financial Specialist (PFS)
- Senior Accountant
- Tax Attorney
- Tax Firm
- Tax Professionals
- Young CPA
