With potentially costly legal claims by dismissed employees soaring, CFOs should make sure job-elimination plans are airtight.
Kate Plourd, CFO.com | US
January 22, 2009
Under the United States Supreme Court decision LaRue v. DeWolff, an individual participant in a participant-directed defined contribution plan can sue the plan's fiduciaries for losses to their own plan. Terminated employees now have 401(k) balances that are down 40 - 50% in value from last year. Many are going to be blaming their former employer for their losses and can now sue because of LaRue v. DeWolff. It is more important than ever for corporations to have a pension consultant review their plan and investment options and look at reducing and transferring their fiduciary responsibilities to prudent experts.
Posted by Darwin Abrahamson | January 22, 2009 06:37 pm© CFO Publishing Corporation 2009. All rights reserved.