2023 was a banner year for 401(k) plan litigation, with suits filed by plaintiffs claiming excess fees, high cost/low performing investment options or a limited investment menu, etc. While much activity seems to be frivolous lawyer-driven class action suits, recently a settlement was struck in a high profile excessive fee suit against the Estee Lauder 401(k) plan.
Is your organization prepared to stave off litigation?
You may feel that your plan is immune from lawsuits (or audits, contribution recalculations or revisions, or other pitfalls). Bear in mind that the hundreds of companies serving as defendants in lawsuits likely felt the same way. Even if the suit is without merit, your time and resources will be taken away from your normal business operations and not properly focused on your benefits program.
That’s why, in these situations, the best defense is a good offense.
Your plan may need a “checkup.” Optimatum offers a comprehensive Retirement Plan Checkup that willassess your plan and alert you to potential exposure or vulnerabilities.
Our Checkup encompasses a holistic review of your retirement plan’s structure, processes and vendors, culminating in a comprehensive report of findings, risks, opportunities and suggested next steps. Learn more here.
A deliberate and methodical approach to retirement plan compliance, based on recommendations from a Retirement Plan Checkup, may decrease the odds of a lawsuit filed against your organization by overzealous law firms and plaintiffs.
Optimatum is a vendor management firm that focuses exclusively on the HR supply chain, including Employer Sponsored Healthcare, Retirement and HR Systems vendors. Our turnkey solutions improve the financial, operating performance, transparency and accountability of HR Benefit programs while still maintaining existing vendor relationships.
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