The fiduciaries of a company’s retirement plan have a serious duty to oversee and manage the plan’s portfolio and funds to ensure the plan meets the best interests of its participants. According to the terms of the Employee Retirement Income Security Act of 1974, fiduciaries may not make decisions regarding the plan that may harm the financial well-being of the participants or make changes without notifying the participants. Tennessee residents may be watching closely as employees of one company file a class action lawsuit against the fiduciaries of their retirement plan for alleged ERISA violations.
Cintas Corporation designs and distributes items and services, such as personalized uniforms, promotional products and cleaning services, to businesses across the country. Like many large companies, Cintas provides benefits for its employees, including a 401(k) retirement plan. Recently, plan participants noticed concerning trends in their retirement plans, and after some investigation, they filed a lawsuit for violations of ERISA.
The class action suit claims that the fiduciaries of the plan did not oversee the plan carefully enough to recognize that there were better investment options available for participants for a lower cost. They also allege that the fiduciaries failed to take steps that would save money for the participants and increase their profits, such as collective trusts. Fiduciaries may have overpaid for administrative services as well.
The mismanagement of a retirement fund can be devastating to participants who may make many life decisions based on what they expect their financial investments to do for them. Tennessee plan participants may have similar concerns about their own plans that are under ERISA protection. They would be wise to reach out to a knowledgeable attorney for an evaluation of their situation.