Liabilities abound, each one requiring serious attention from sponsors and their legal counsel.
We believe sponsors will be able to manage these potential liabilities successfully tomorrow if they protect themselves today with carefully drawn and implemented plans. Section 409 provides further that fiduciaries must make good any losses suffered by a plan as a result of their breach. In addition, a participant or beneficiary may bring a cause of action to recover benefits due to her under the terms of the plan, or to obtain other appropriate equitable relief. Therefore, an employer could face potential liability to its employees for any actions which constitute a breach of fiduciary responsibility. In general, there are two broad categories of activities that could give rise to liability.