With all the red flags being raised by plummeting company stock involved in retirement plan investments, it may be time to take a closer look at your company's stock. In fact, the Employee Retirement Income Security Act (ERISA) has special rules for companies that offer company stock options as a retirement plan investment.
Case in point: A group of employees sued their employer and several of its officers and directors for an alleged breach of fiduciary duties under the company's ERISA-governed retirement plan.
The employees claimed that those officers and directors, as plan administrators: 1) continued to offer company stock as an investment option even though they knew it was suffering a decline, and 2) failed to give complete and accurate information regarding that stock and the reliability of it as a retirement plan option.
The company argued that plan documents expressly prohibited the administra...(register to read more)