As published in IRS News Release IR-2021-216, Nov. 4, 2021
Economic downturns aren’t good news for anyone, but for plan sponsors and fiduciaries, they can signal double trouble as the harbinger of looming litigation. After the financial meltdown of 2008, the number of 401(k) complaints filed under the Employee Retirement Income Security Act of 1974 (ERISA) spiked to a high of 107. The number of new lawsuits dwindled to just two filings in 2013 before rising again. Experts fear the COVID-19 crisis could spawn a rash of new class-action 401(k) lawsuits from participants unhappy with the present state of their investments.
On March 27th, 2020 the Coronavirus Aid Relief and Economic Security (CARES) Act was signed into law. Watch our video below to learn more from industry-renowned ERISA attorney Joel Shapiro, SVP, RPAG about the impact of this new law on plan sponsors and participants.