How it works
Fiduciaries may be sued only for failure to execute fiduciary duty, either
- didn't do it, (negligence), or
- improper execution - did it , but wrong
A judge must rule based on two thresholds
- In civil law, proof is determined by which side presents the preponderance of evidence (better evidence wins, reasonable doubt is not applied)
- in ERISA law, fiduciary judgment is measured against what a reasonable person in the same situation would do (perfection is not required)
Presented with irrefutable evidence of your proper, reasonable execution of duty, a judge will grant your motion to dismiss the charges against you.
- FSH's members get such documentation.
Members forward to us certain factual data, most of which comes from filings or emails.
Already in electronic form, it is easily forwarded to us in just minutes. From that upload we extract and enter data into our SAFE-D software and database.
SAFE-D performs analysis of fulfillment of fiduciary duty and downloads to you the worksheets and your signature ready minutes.
The download includes proof of your fiduciary fulfillment of regulation 408(b)(2) and ERISA 404(a), required oversight tasks. Absence of either would prove fiduciary violation of duty; presence of both is proof of proper execution of duty. Everything turns on these documents and you will have them.
We discuss and review with you.
You sign, date and file.
This is the shortest time possible for proper execution of these duties.
We repeat the process annually. Your proof will extend over years.
The documentation provided to members is required either by ERISA law or by Department of Labor regulation.
As such, the plan or the employer (not the fiduciary) pays for it. FSH's annual dues are a low flat fee and low per participant fee, significantly lower than fees charged by a plan's service providers.
Cost is not an issue.
To learn more about your liability and how to escape it, get the The 401k) Lawsuit Playbook.