New Jersey workers often rely on their pensions and disability insurance as safety nets for the future. ERISA is a fundamental part of protecting workers from employer wrongdoing in these areas. Still, companies are often accused of misdeeds by violating regulations and mismanaging retirement accounts. Recently, a series of lawsuits were filed due to issues with 401(k) accounts.
Small and large retirement accounts subject to illegal behaviors
Legal filings have been growing in recent months. Companies that have been targeted include Fidelity Investments, Estee Lauder and Costco. ERISA is in place to shield retirement savings and to provide oversight making sure there is transparency. Laws are supposed to prevent mismanagement and track how companies handle retirement accounts. The lawsuits are being filed for many reasons, but one of the primary catalysts is when fees to manage the investment accounts are too high.
Although these fees are needed, if they are excessive based on the amount that the investment will yield, questions arise. Some cases stem from the companies not setting management fees to adhere to the employees’ best interests. If the employer fails to give the employees the information they are entitled to, it is considered negligence under ERISA. This makes a lawsuit a valid option. Companies may insert various hidden fees that can escalate and be grounds for a legal filing. That includes management fees and consulting fees.
Understanding ERISA and knowing how to address problems
People who are worried about any aspect of their retirement and disability accounts should understand how the law protects them. Disability coverage is in place to help those who cannot work and need to make ends meet while getting medical care. Retirement accounts are a fundamental aspect of a worker’s future. The failure to follow the rules under ERISA is cause for a lawsuit. If your disability or retirement accounts have been compromised, consider reaching out to a lawyer with experience in ERISA-related lawsuits.