As a plan sponsor, managing a group retirement plan comes with significant responsibilities—and risks. At some point, most group retirement plans are likely to face an audit by the U.S. Department of Labor (DOL). These audits can result in monetary fines or taxes levied not only on the companies sponsoring the plans but also, in some cases, on the company’s shareholders personally. This liability makes it critical for plan sponsors to prioritize risk mitigation.
Legal Risks to Plan Sponsors
Beyond audits, plan sponsors also face exposure to participant class-action lawsuits. High-profile companies such as Boeing, Caterpillar, Deere, and Kraft Foods have been targets of such lawsuits. These legal actions often claim excessive fees or investment losses within the plan and seek recovery from plan sponsors, including individual corporate executives, board directors, and members of investment committees. Under ERISA (the Employee Retirement Income Security Act), personal liability can extend to these individuals depending on the findings of such cases.
How We Help
At Ironview, we specialize in helping businesses and their leadership mitigate these risks. Through a 3(38) fiduciary engagement, we assume full responsibility for investment decisions within the retirement plan, significantly reducing the liability of plan sponsors, corporate executives, and other stakeholders. This approach not only ensures compliance with ERISA regulations but also protects individuals from unnecessary exposure to personal liability.
Effective group retirement plan management requires more than a mutually beneficial structure; it demands proactive oversight and a robust risk mitigation strategy. At Ironview, we provide the expertise and tools needed to navigate these challenges confidently, so you can focus on supporting your employees and their financial futures without compromising your company or its leaders.
Contact us to learn how we can help safeguard your plan and its stakeholders.