TAX 9873 Lecture Notes - Lecture 26: United States Court Of Appeals For The Second Circuit, Employee Retirement Income Security Act, Federal Reporter
Document Summary
Fiduciary standards of conduct: erisa imposes the highest standard of conduct known to the law. Don"t have to be right as long as engage in a prudent process. Failure to follow reasonable procedures is sufficient to show breach. Process requires appropriate consideration of those facts and circumstances the fiduciary knows or should know are relevant to a particular investment and the fiduciary has acted accordingly. Example: after engaging in a prudent process, a plan"s fiduciaries invest plan assets in stock. The next day, the market unexpectedly crashes and the plan loses a lot of money. The fiduciaries will not be liable as they engaged in a prudent process. You are a fiduciary, acting in the best interests of your sister"s consulting company. Act solely in the interest of participants as a whole group. Can"t put the company"s interests ahead of participants. No need to maximize benefit for individual participant. Procedural prudence must engage in a prudent process.
