A major employer in Washington, D.C., and around the country, Salesforce is facing an ERISA lawsuit over claims that it did not properly handle its retirement program. Specifically, the plan administrators are accused of breaching their fiduciary duty to plan members and beneficiaries. Salesforce, its board of directors and its investment committee are all named as defendants in the suit, which alleges that the company failed to save the assets of its plan members by opting for lower-fee investment management options. The large retirement plan had over $2 billion in assets in 2018, which the plaintiffs say gives it significant leverage in negotiating a better deal.
The recent US Supreme Court Ruling on the Intel ERISA Challenge stemming from a recent lawsuit regarding employee benefits has set a new framework for the establishment of "actual knowledge" in such cases. While this update out of Washington DC isn't major news for many political and commercial entities, it does have profound implications for employers across the country and members of the retirement planning industry.