When people in California elect to participate in their employer’s retirement account program, they should be able to trust that their money and best interests will be properly taken care of. Every fund that falls under the jurisdiction of the Employee Retirement Income Security Act is supposed to be administered in a way that meets the rules of the program. Unfortunately, this does not always happen and innocent people can be at risk of losing valuable retirement savings or paying too much for their plans.
A new lawsuit has been filed in Texas that alleges a specific ERISA retirement plan was not properly managed. As reported by Plan Sponsor recently, there are four specific counts called out in the complaint. One of the counts asserts that there was a gross failure to monitor ERISA compliance among the plan’s committees and the members of those committees. Another count alleges a breach of the fiduciary duty. The final two counts assert that prohibited transactions were engaged in. Some of these were with a fiduciary and some with a party-in-interest.
The suit asserts that fees were excessively high and the returns not high enough plus the management of the fund is indicated as having been subpar. There are multiple defendants identified in the lawsuit. Among the defendants are the employer company, the plan’s administrative committee, and the plan’s investment committee. There are also 20 individual defendants named in the case.
The report by Plan Sponsor did not provide any details as to what damages may be sought by the plaintiff.