There are plenty of cases out there, arguing that plan sponsors that use forfeitures to reduce employer contributions rather than paying administrative expenses are creating a fiduciary breach and a prohibited transaction.<\/p>\n
While most of my clients won\u2019t be subject to any type of litigation, I can see one day when the Department of Labor will opine that it\u2019s impermissible to use forfeitures to reduce employer contributions when participants can pay less in fees if they\u2019re used to offset plan expenses.<\/p>\n
So plan sponsors need to be concerned more about saving on plan expenses for their participants than saving a couple of shekels with their employer contributions.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" There are plenty of cases out there, arguing that plan sponsors that use forfeitures to reduce employer contributions rather than paying administrative expenses are creating a fiduciary breach and a prohibited transaction. While most of my clients won\u2019t be subject … Continue reading