RES IPSA LOQUITUR
“the thing itself speaks”
‘under the circumstances then prevailing … a prudent man
acting in a like capacity and familiar with such matters’
would seek outside counsel, is imprudent and a violation
of ERISA.” (Katsaros v. Cody)
A word of caution with regard to plan sponsors seeking
outside council – although failure to do so may be regarded
as a breach of fiduciary duty by the courts, case law has held
that “blind faith” in the advice of an independent expert
does not necessarily relieve a plan sponsor of his liability.
Courts have held that while plan sponsors should retain
the services of third part consultants when circumstances
necessitate it. Plan sponsors should use the advice
appropriately, basing their decisions upon the particular
facts and individual needs and requirements of their
participants and beneficiaries, “… (the court) believes that
ERISA’s duty to investigate requires fiduciaries to review
the data a consultant gathers, to assess its significance and
to supplement it where necessary.” (Unisys Savings Plan
Litigation, 74 F. 3d 420 (3rd Cir.), (1996)
The timing of this is important because experts warn that
in the past twelve months the Department of Labor has been
“cracking down on retirement plan advisors for fiduciary
negligence.” This is significant because it should serve as a
“heads-up” to plan sponsors to bring their “A” game to the
table. Understand what your duties and responsibilities are
to the plan and the participants and beneficiaries.
Make certain as a plan sponsor you are meeting your
fiduciary responsibilities under ERISA. If you are uncertain
or do not understand how to carry out your duties as a plan
sponsor seek outside counsel – it is not only prudent, it is
legally required! Be worthy of the trust that is placed upon
you by the participants! Meet your fiduciary duties – it’s
the law!
HARPER DANESH
Actuarial Consulting • Retirement Planning
We partner with organizations
to help them:
■ Analyze their retirement plans and recommend
strategies to meet their needs
■ Manage their pension plan costs to align with
their business strategy
■ Identify and transition to alternative retirement
programs if desired
Call Harper Danesh and
team up with the experts.
E X P E R I E N C E • S E RV I C E • VA L U E
399 Alexander Street, Rochester, NY 14607 | 585.319.4218 | harperdanesh.com
Benefits you deserve
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