Edelson Lechtzin LLP is investigating whether fiduciaries of Iowa Health System Section 401(k) Retirement Savings Plan have breached their duty of prudence under the Employee Retirement Income Security Act of 1974 ("ERISA").
ERISA imposes strict fiduciary duties of loyalty and prudence upon employers and other plan fiduciaries. These twin fiduciary duties have been described by appellate courts as "the highest known to the law." Braden v. Wal-Mart Stores, Inc., 588 F.3d 585, 598 (8th Cir. 2009).
In particular, the fiduciaries of the Iowa Health System 401(k) Plan had an obligation to scrutinize each investment option offered in the Plan to ensure it was prudent both in terms of cost and performance, but failed to do so. Instead, the Plan selected investment options with expense ratios that are many times greater than comparable funds in the same fund category, including the following:
In addition, our investigation indicates that the Plan's fiduciaries wasted participants' assets by failing to monitor and control the Plan's recordkeeping and administrative expenses.
If you have suffered losses in your 401(k) plan, click here to submit your info - one of our attorneys will analyze your investments to determine if your loss is due to mismanagement.