Group Retirement
Risk Management

Group Retirement - Private Equity Fund Sponsors

What is the risk or liability faced by plan sponsors?

Many of Ironview's services for PLAN SPONSORS surround risk mitigation at the plan sponsor level. So, what is the risk or liability faced by plan sponsors? It is likely that group retirement plans, at some point in time, will be audited by the U.S. Department of Labor (DOL). The DOL has the ability to levy material monetary fines and/or taxes on the companies sponsoring group retirement plans AND the shareholders, personally, of said companies. For example, the average paid claims for firms found to be in fiduciary breach was $994,000. Moreover, the defense cost, on average, to defend against these claims was approximately $365,000, according to the latest Tillinghast Fiduciary Liability Survey.

In addition, another major risk for plan sponsors surrounds participant class action lawsuits. A list of some of the companies targeted in these lawsuits includes:

  • Boeing Co.

  • Caterpillar Inc.

  • Deere & Co.

  • Exelon Corp.

  • General Dynamics Corp.

  • Kraft Foods Inc.

  • International Paper Co.

  • Lockheed Martin Corp.

In each of the above cases, the complaint seeks to recover excessive fees and investment losses from the plan sponsor, or from the owners of the plan sponsor, personally. Individual corporate executives, board directors and investment committee members may all be personally liable for losses under ERISA.

Ironview, through their specialized 3(38) fiduciary engagement, enables each of the parties listed above to mitigate this risk to the greatest extent allowable under ERISA (see PLAN SPONSORS).