5 tips to avoid liability for benefit plan mistakes — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

5 tips to avoid liability for benefit plan mistakes

Get PDF file

by on
in Employee Benefits Program,Human Resources

Anyone with responsibility for health, benefit, disability, severance, education or other benefit plans is a “fiduciary.” And fiduciaries can be held personally liable for plan errors under the Employee Retirement Income Security Act (ERISA). According to Sherwin Kaplan, an attorney with Nixon Peabody in Washington, D.C., employers should take these steps to avoid errors that could subject a fiduciary to liability:

  1. Adopt good written policies and procedures for each plan—and follow them.
  2. Document all significant decisions with meeting minutes and filed memos.
  3. Always be able to explain why you took (or didn’t take) any significant action.
  4. Conduct a formal bidding process for benefit providers.
  5. Make sure anyone communicating with employees on behalf of the plan are providing accurate information.

Leave a Comment

Previous post:

Next post: