As more employers offer defined contribution plans, Euclid Specialty underwriters often field inquiries relating to the fiduciary liability exposure of these plans. The common thread in these questions is whether a defined contribution plan eliminates most fiduciary responsibility. While we readily acknowledge that a self-directed defined contribution plan carries less fiduciary risk than a traditional defined benefit plan, we have become concerned that too many plan sponsors are underestimating the fiduciary responsibilities – and thus liability risk – when offering a defined contribution plan.
To help answer some of these questions, we asked the ERISA counselors at the Blitman and King, LLP law firm to author a white paper for our producers and policyholders to highlight some of the fiduciary responsibilities faced by plan sponsors of defined contribution plans under ERISA. We hope this white paper on the investment considerations under ERISA for defined contribution plans is useful to anyone considering the need for fiduciary liability insurance protection for their employee benefit plans.
Click here to read the full white paper
Euclid Specialty is a division of Euclid Program Managers, a family of insurance program administrators specializing in Professional Liability, Executive Liability, Public Entity, Fiduciary Liability and Labor Affinity programs. To learn more visit website euclidprograms.com.