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Why the Makes Sense 401k? |
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Employer fiduciary liability for 401k's has spiraled upward in recent years. A recent HR industry publication said, "No company - from the smallest mom-and-pop shop, to the largest private employer in the world - is too small or too big to be sued for breaching its fiduciary liability."1 Just a simple Google search of "401k Lawsuit" returns more than
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650,000 results.2
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One industry article characterizes high-cost 401k plans as
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"Lawsuits waiting to happen."3
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And with the 2012 fee-disclosure requirements, another article says,
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"Plaintiff's attorneys have become much more savvy and emboldened in their attacks on 401k fees..."4
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The Department of Labor's Employee Benefits Security Administration ("EBSA") produces a Fact Sheet each year enumerating the enforcement actions they have brought against 401k and other benefit plan sponsors during the prior year. The latest Fact Sheet, covering enforcement actions during 2011, headlines a total
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$1.38 billion of penalties, fines and recoveries leveed on plan sponsors, arising from 3,472 investigations.5
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Of that number
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$478.1 million came from settlements brought about by their active "whistleblower" program, in which employees are encouraged to report complaints about their plans. In 2011, an amazing 233,780 calls and messages were received by this program.5
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That's why the Makes Sense 401k makes so much sense - its dual emphasis on dramatic liability reduction and dramatic cost reduction benefits all parties involved, and helps keep you, the employer, out of the courtroom and in your showroom, factory, construction site or office!
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Click here to learn more about how the Makes Sense 401k is constructed to benefit employers. |
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Click here to learn more about how the Makes Sense 401k benefits your employees. |
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