Fiduciary Liability

The Department of Labor (DOL) estimates that six out of 10 retirement plans are out of compliance with DOL requirements. Further, the DOL estimates that on average, it takes over $200,000 per out-of-compliance plan to make the proper corrections and bring it back into compliance.

It gets worse, you may be held personally financially liable, as a fiduciary of the plan, to bring it back into compliance!!! Plan sponsors, trustees, investment committee members, and others are all very likely to be considered fiduciaries to their organization's retirement plan. Over the past few years, the DOL has heightened its scrutiny with respect to fiduciary responsibility; accountability and penalties have consequently grown, as underscored by recently effective mandates and increased litigation.