Pensions these days are never far from the headlines – from western governments wrestling with funding aging populations to the phasing out of public sector final salary schemes. But along with the major political news there are also stories of mismanagement and errors in pension funds or employee benefit trust funds. When these kinds of events occur and a lawsuit arises it pays for fiduciaries or trustees to be properly protected.
Fiduciaries can include many groups of people including pension committees, human resources departments, boards of trustees, administrators, directors, officers and actuaries. The primary duty of a fiduciary is to always act prudently on behalf of any plan’s beneficiaries. Failure to do so may invoke personal liability and claims occur when fiduciary duties are breached.
The sad truth is that despite good intentions mistakes happen, or mismanagement or negligence occur and an allegation of a wrongful act can be brought. However, good governance includes understanding the potential for claims and how they can be reduced or eliminated with adequate insurance protection. That’s why it makes sense to have a Fiduciary Liability Insurance policy from Axis Insurance in place – to give both beneficiaries and trustees peace of mind.
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