Legal Question in Business Law in Arizona
Pension plan
I am the president of our group of
practicing physicians in AZ (15 docs).
I am the trustee of the pension plan,
a 401k and profit sharing plan. The
docs can choose whatever
investments they want essentially.
As trustee am I liable if one of the
docs try to say the pension plan is
''underperforming'', or say they think
the fees are too high? (we use
Schwab, could they allege it would
have been cheaper to use, say,
Vanguard). Should I purchase some
sort of liability insurance coverage to
protect myself?
1 Answer from Attorneys
Re: Pension plan
As trustee of the pension plan, you have undertaken a fiduciary duty to all plan participants, a duty of care and the responsibility to assure that the plan is in compliance with all rules and regulations. You should be entitled to legal and accounting counsel to help you in the performance of your duties. It is always beneficial to have professional liability coverage, and an agreement with the group members to reimburse you for any expense, cost or loss you suffer acting on their behalf, in case you make a mistake.
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