BW INSIGHTS

Recent Challenges to Plan Forfeitures

Recent lawsuits are challenging 401(k) plan sponsors’ use of forfeitures to reduce employer contributions. Such practice is a long-standing precedent permitted by the Internal Revenue Service “IRS.” Plaintiffs in these suits claim that the decision on how to apply forfeitures is a fiduciary determination. The plaintiffs further allege it is a... Read More

Understanding ERISA Fiduciary Duties

The Employee Retirement Income Security Act (“ERISA”) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry. ERISA provides protection for individuals in such plans. Central to ERISA is the concept of fiduciary duty, which mandates that those managing and controlling plan... Read More