You are here

Charity Officers Sued for Breach In Administering ERISA Plan

Charity Officers Sued for Breach In Administering ERISA Plan

Charity Officers Sued for Breach In Administering ERISA Plan

DOL claims breach in soliciting contributions from service providers, obtaining job for son
Charities and others are increasingly facing suits for alleged breach of fiduciary duty in failing to hold down the costs of various pension and benefit plans covered by the Employee Retirement Income Security Act (“ERISA”). ( See Nonprofit Issues ® , 6/16. ) But a Department of Labor suit against a group of nonprofits in Maryland has raised two additional issues: that charity officials breached their fiduciary duty in one case because they solicited charitable contributions to their separate fundraising foundation from their plan service providers, and, in another case, because the son of an official was hired by a service provider as an employee. A federal District Court in Maryland has...

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

 

Sign-up for our weekly Q&A; get a free report on electioneering