Despite courts across the nation closing its doors to maintain social distancing rules during the current epidemic, there continues to be regular legal actions transpiring remotely, in relation to ERISA, or the Employee Retirement Income Security Act.
During the last two weeks, numerous cases have been filed, decisions have been made on motions to dismiss, and other orders have been completed within federal courts. How is this possible? Well, though trials are typically held in person, many judges during this time are deciding motions on “on the papers” without lawyers entering the court to deliver oral argument. This includes judges making a tentative ruling from paper evidence and those who filed the case can make written submissions in response to said ruling.
Consequently, ERISA plan fiduciaries must pay close attention to current litigation. Fiduciaries should stay focused on their employee benefit plans, what investments are currently offered and how plan participants are investing. Questions have arisen based on whether plaintiffs could successfully deliver a case that plan fiduciaries botched their ERISA responsibilities during the coronavirus pandemic. Hence, it is vital to continue monitoring the legal and financial actions that other plan participants are taking in order to keep watch for what could lie ahead.
No plan sponsor can foresee what may happen during and following the crisis, but you can prepare for the unexpected fiduciary liability insurance. Fiduciaries are defended and indemnified from covered plan participant lawsuits with fiduciary liability insurance, and valuable company data and information of the plan and company are protected with cyber liability insurance—all found in our ERISA bond packages. Contact us today to obtain your ERISA fidelity bond package today.