Of all the articles I have written, the recent one about The Worthlessness of 401(k) Fiduciary Warranties has gotten the greatest response. I thank all my readers who have had a hand in building my national ERISA/ retirement plan practice.
Two things that people have mentioned about the article:
1. Several people including a former ERISA litigator said that a plan sponsor will never be sued for failing to make a broad range selection of investments under ERISA 404(c). While I respect their opinions, I never like speaking in absolutes. As Obi Wan Kenobi said in Revenge of the Sith, only the Sith speak in absolutes.
2. A good friend of mine point out that the biggest purveyors of these warranties are insurance companies. The business of insurance companies is to insure risk. So he reasoned that what does it say about the risk when they give these warranties for free? Couldn’t have said it better myself.