Benefits provided through your employer play a vital role in protecting you and your family. They can comprise a considerable portion of the overall compensation you receive on the job, and they often represent years of work and your own financial contributions. Plan administrators have a fiduciary duty to manage these plans wisely so that benefits will be there when you need them. When they breach fiduciary duties, you have the right to file a claim.
Employer-provided benefits often include group health plans, short and long term disability insurance, life insurance, and pension, stock sharing, or retirement benefits. These protect you when unexpected events happen and help to ensure you are provided for in the future. Monthly premium payments and contributions to benefit plans are often shared between employers and employees.
Plan administrators play a major role in managing benefits, collecting premiums, and keeping policies up to date. In this role, they have a fiduciary duty that carries certain responsibilities. Under guidelines from the Department of Labor (DOL), this includes:
When plan administrators fail to act prudently and breach their fiduciary duties, it can have serious ramifications for employees. After paying into plans for years, you could find yourself facing the following:
This could mean that health, disability, or life insurance is not there when you need it. It could also result in the loss of any pension or retirement benefits to which you would otherwise be entitled. For employees in this situation, the results can be devastating. Fortunately, there are federal laws in place designed to protect you.
The Employee Retirement Income Security Act of 1974 does not require employers to provide benefits, but it does provide rules and regulations regarding how they are administered. When a plan administrator breaches their fiduciary duties, ERISA provides legal recourse to the employee involved, which includes the right to file a claim seeking compensation for any losses suffered.
When plan administrators breach their fiduciary duties, Bartolic Law holds them accountable. Call or contact our Chicago ERISA lawyer today to request a consultation.