ERISA Fiduciary Duties Relating To Company Stock Options

by on
in Human Resources

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)

To read the rest of this article you must first register with your email address.

Email Address:

Related Articles...

    No matches

Leave a Comment