HUB International and Nixon Peabody teamed up to deliver a comprehensive discussion on fiduciary liability, blending legal and insurance perspectives to help organizations manage risk effectively. The session featured Nixon Peabody Employee Benefits & ERISA and ERISA Litigation attorneys Eric Paley, Jennifer Squillario, Ian Taylor, and Lena Gionnette. Together, they shared practical guidance for plan sponsors and fiduciary committees.
Highlights include:
- Understanding core duties. Fiduciary obligations under ERISA center on loyalty and prudence. Decisions must prioritize plan participants and follow a well-documented, prudent process.
- ERISA litigation trends to watch. Excessive fee claims remain common, while forfeiture lawsuits and prohibited transaction cases are gaining traction. Emerging areas include tobacco surcharge litigation and pharmacy benefit manager disputes.
- Governance and risk management. Establishing active fiduciary committees, maintaining detailed meeting records, and addressing cybersecurity risks are essential steps. Consider structures that shift some responsibility to investment managers.
- Looking ahead. Anticipate challenges tied to AI in benefits plan administration and alternative investments like cryptocurrency. Apply rigorous oversight, ask the right questions, and document decisions to mitigate risk.