Identifying Employee Benefits Violations Under 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 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. When an investment professional is in charge, they assume the legal duty to investigate and evaluate investments in the plan and how to handle the investments in a prudent manner.
What Actions are Considered Violations Under 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.
Call a Los Angeles Securities Attorney Today
When your pension or profit-sharing plan or 401(k) is mismanaged or fails to use the most cost-effective funds, the plan can lose value your broker or your employer may be liable. You may have certain legal rights under ERISA as an employee. Contact an experienced Los Angeles securities attorney today to discuss these rights.