As an employee, it is important to be aware of your rights and protections under the Employee Retirement Income Security Act.
ERISA ensures that those responsible for managing your retirement funds act in your best interest. However, breaches of fiduciary duty can occur, potentially putting your retirement savings at risk.
1. Lack of transparency
One of the most common signs of a potential ERISA fiduciary breach is a lack of transparency regarding your retirement plan. If you find it difficult to obtain clear and understandable information about your plan’s fees, investment options or performance, it could be a red flag.
2. Conflicts of interest
Another warning sign is conflicts of interest among those responsible for managing your retirement plan. For example, if your employer’s chosen investment options primarily benefit the company or if you discover undisclosed relationships between plan administrators and investment providers, it could indicate a breach of fiduciary duty.
3. High fees
Excessive fees can eat away at your retirement savings over time. If you notice unusually high fees associated with your retirement plan, it is worth examining whether those fees are reasonable compared to the services provided. A significant disparity could indicate a breach of fiduciary duty.
4. Failure to diversify
Diversification is key to mitigating risk in investment portfolios. If your retirement plan lacks diversification or offers limited investment options, it may suggest that the plan administrators are not prudently managing your investments. In some instances, that is happening across the board, potentially resulting in millions of lost dollars for employees.
If you suspect a breach of fiduciary duty concerning your retirement plan, you have options. By staying vigilant, you can help protect your hard-earned retirement savings from potential misconduct.