Not meeting your yearly ERISA Compliance can cost your company tens of thousands, if not millions of dollars!
How? In 2008, General Motors was forced to settle a $38 million dollar class action lawsuit brought against them by former employees. Why? Because they were not ERISA compliant!
If it can happen to one of the BIG THREE, it can HAPPEN TO YOU!
Have you met your 2008, 2009 or 2010 ERISA compliance requirements? If not, then you are placing your company in serious peril!
What is ERISA?
ERISA is the acronym for Employee Retirement Income Security Act of 1974. ERISA is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans. ERISA requires plans to provide participants with plan information including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; and gives participants the right to sue for benefits and breaches of fiduciary duty.
Why should I care about or comply with ERISA requirements?
The SUPREME COURT on February 20, 2008 ruled that employees can sue employers over mismanagement of their retirement accounts.
How much money can it cost your company by not complying with current ERISA Guidelines and Laws?
How much do you currently have in your Employee Retirement Fund? The answer is simple – whatever employees lose, they can recover from you if you are not ERISA compliant. Note these past court settlements:
Lucent Technologies, Inc. - $69,000,000
Providian Financial Corporation – $8,600,000
Dynegy Inc. - $30,750,000
Global Crossing Ltd. - $79,000,000
Household International – $46,500,000
Enron Corporation – $85,000,000
Royal Dutch Shell - $90,000,000
Williams Cos., Inc. - $55,000,000
WorldCom, Inc. - $48,000,000
AOL Time Warner – $100,000,000
CMS Energy Corporation – $28,000,000
HealthSouth Corporation – $28,850,000
Mirant Corporation – $9,700,000
Polaroid Corporation – $15,000,000
Southern Company – $15,000,000
American International Group, Inc. – $24,200,000
General Motors – $37,500,000
Goodyear Tire & Rubber Company – $8,375,000
Syncor Int’l. Corporation – $4,000,000
Countrywide Financial Corporation – $55 million
General Electric – $40 million
Marsh & McLennan Companies – $35 million
Merrill Lynch & Company, Inc. – $75,000,000
State Street Bank & Trust Company – $89,750,000
Tyco International Ltd. – $70,500,000.00
Xerox Corporation – $51,000,000
Employee Retirement Income Security Act litigation continues to be a growth area in the employment arena, with the continued fallout from the economic recession, the emergence of a new generation of retirees and the eagerness of the plaintiffs bar combining to generate an increase in federal ERISA filings. A survey analysis of federal court cases revealed that 2,327 cases were filed in U.S. district courts during the first quarter of 2010.
How do you protect your company from possible litigation and fines, and create a win-win situation for your company and your employees?
The Pension Security Act (H.R. 3762) outlines several rules that a company MUST follow each year in order to protect themselves. The main rule that must be followed is that every single employee must receive basic information regarding their retirement accounts from a disinterested third party, and be informed of their options.
The Wayne Turner Group offers two basic programs that will not only cover your responsibilities under the ERISA Laws, but also ensure employee loyalty and dedication by helping to relieve your employees of their financial stress. Ninety-percent of all employees have difficulties managing their money and are failing to save for their retirements on a consistent basis.
Surveys now show that over 53% of employees spend time during work hours to attend to their personal financial issues, costing employers on an average 21 hours per month, or between $7,000 and $15,000 per year, as employees deal with their personal money matters.
When you are ready to protect your company and win your employees over at the same time, contact Bill Turner of our team at 248-552-6606, ext 152, and let us show you how our two programs will save you money, and help you avoid possible litigation and fines in the future.