Identifying Employee Benefits Violations Under ERISA

What is ERISA?

If you work for a company that offers benefits as part of your compensation package, the Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that governs such matters. ERISA sets minimum standards for most voluntarily established pension plans in private industry to provide protection for individuals in these plans. Many business owners or managers are not properly qualified to evaluate pension plans, profit-sharing plans, or 401(k) plans, so they rely on investment professionals to do so. Investment professionals who oversee 401(k) plans assume the legal duty to investigate and evaluate investments in the plan and how to handle the investments in a prudent manner.

What Actions Can Be Considered Violations of ERISA?

Violations in a 401(k), pension, or profit-sharing plan include:

  • Failing to operate the plan prudently for the benefit of the participants
  • Failing to use the most cost-effective funds within a plan
  • Using plan assets to benefit only certain members of the plan
  • Failing to follow the plan terms 

Did You Experience Violations of ERISA?

When your pension, profit-sharing plan, or 401(k) is mismanaged or fails to use the most cost-effective funds, the plan can lose value and your broker or your employer may be liable for those damages. You may have certain legal rights under ERISA as an employee. Contact an experienced Los Angeles securities attorney today to discuss these rights.