What is an ERISA 404 notice?

ERISA section 404(c) relieves plan sponsors and other fiduciaries from liability for losses re- sulting from participants’ direction of their investments. This protection applies only to partic- ipant-directed investments, and not to investments required under the plan or directed by the plan sponsor.

What is ERISA 404 retirement plan?

Q: What is ERISA Section 404(c)? Section 404(c) is a specific part of this law that permits employees to direct the investment of their own retirement accounts. An employee may want to direct their own retirement account so they can control how much of their savings are being invested into what types of companies.

What is the statute of limitations for an ERISA claim?

Under Section 1113(2) of the Employee Retirement Income Security Act of 1974 (ERISA), plaintiffs alleging a fiduciary breach by their retirement plan sponsor have six years to bring a claim unless the defendant can demonstrate that the plaintiff had “actual knowledge” of the breach or violation, in which case that time …

What is Section 502 A of ERISA?

Statutory Authority. ERISA section 502(i)(1) authorizes the Secretary to assess a civil penalty against a party in interest who engages in a prohibited transaction with respect to either an employee welfare benefit plan or a non-qualified pension plan.

What is an ERISA 404 (c) plan?

An “ERISA section 404(c) Plan” is an individual account plan described in section 3(34) of the Act that: (i) Provides an opportunity for a participant or beneficiary to exercise control over assets in his individual account (see paragraph (b)(2) of this section); and

What is ERISA preemption?

What is ERISA Preemption? In the context of ERISA law, to preempt ( pronounced “pre-empt”) something is to take its place because of priority. ERISA has a higher priority than similar (or directly conflicting) state laws, so it takes the place of those laws, even if they were written after ERISA.

What is Section 404(c) of the Employee Retirement Income Security Act?

When followed in its entirety, Section 404 (c) of the Employee Retirement Income Security Act (ERISA) provides a safe harbor for fiduciaries related to the investment actions of participants.

What is the 404(c) rule?

In a phrase, 404 (c) is designed to protect plan sponsors from employees’ poor investment choices. “While the protection it provides to plan fiduciaries is valuable, the list of requirements can be intimidating,” the paper warns.