Are 401(k)-Plan Trustees Not Up to the Job? Wall Street Journal (05/29/02) p.C1; Chen, Kathy
Industry executives warn that many company 401(k) plan trustees are not properly equipped for their jobs and lack knowledge or may be in danger of conflicts of interest. Pension law does not require daily monitoring of plans or investment expertise on the part of trustees, and the role of trustee is not well defined, bringing conflicts of interest and more lawsuits. The Labor Department usually files some 2,500 fiduciary-breach lawsuits per year, but the number of cases involving 401(k) plans has increased, according to Assistant Secretary Ann Combs, who adds that the reason may be employer-sponsors becoming delinquent in plan payments due to the economic downturn.