Suspect “Warranties” For Employer-Sponsored Retirement Plans

When considering a strategy to protect against lawsuits from participants in employer-sponsored retirement plans, companies should look critically at fiduciary warranties. In many instances they are little more than a marketing gimmick and insurance is a better route, according to sources in a Bloomberg BNA post by Sean Forbes. Often the warranties are carefully worded to avoid acknowledging fiduciary status, and when there is litigation the complaint may address issues not covered in the warranty.