John Hancock ERISA Settlement Includes Appointment of Independent Consultant
For years, ERISA experts (lawyers and fiduciaries) have acknowledged the added value of appointing independent expert fiduciaries to run and monitor retirement plans. Corporate America has been slow to take up this opportunity. Senior executives try to manage their plans internally until they confront litigation, which drains their resources and reputation.
The Department of Labor, and now increasingly the courts, are recognizing that independent expertise is the best model for prudent management of retirement funds. The word is getting out. In fact, the wave is building that independent oversight is best industry practice.
Given the old adage, “pay me now, or pay me later”, corporate executives have a choice: Get ahead of the wave and turn to an independent fiduciary now or continue the status quo until the uglier wave of ERISA litigation knocks you over. As any beach-lover knows, once you are caught in the tumult of a churning wave, turned upside down, gasping for breath, it’s too late to seek the protections of calmer waters.