Small-Business pension plans protected by Hartford Program. (Property/Casualty).Small-business owners who offer their employees a pension plan, medical insurance or life insurance may face personal liability if they breach any of their fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. responsibilities, obligations or duties as
defined by the Employee Retirement Income Security Act The Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. § 1001 et seq. (1974), is a federal law that sets minimum standards for most voluntarily established Pension and health plans in private industry to provide protection for individuals enrolled in these plans. of 1974. Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. now offers small-business owners coverage for this exposure through its
Fiduciary Liability Small Business option.
This option offers $100000 of protection for an annual premium of $150 to qualified companies with 25 or fewer employees. Fiduciary liability applies to anyone who owns or manages a small business and is named in the plan document or identified as a plan sponsor; exercises any discretionary authority over the management, administration or disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of plan assets; or provides investment advice for compensation. Even a business owner who delegates administration of a plan to outside experts can be held personally liable liable adj. responsible or obligated. Thus, a person or entity may be liable for damages due to negligence, liable to pay a debt, liable to perform an act for which he/she/it contracted to do, or liable to punishment for commission of a crime. for errors or misrepresentations in the plan. |
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