Legal Question in Business Law in Arizona

Pension plan

I am the president of our group of

practicing physicians in AZ (15 docs).

I am the trustee of the pension plan,

a 401k and profit sharing plan. The

docs can choose whatever

investments they want essentially.

As trustee am I liable if one of the

docs try to say the pension plan is

''underperforming'', or say they think

the fees are too high? (we use

Schwab, could they allege it would

have been cheaper to use, say,

Vanguard). Should I purchase some

sort of liability insurance coverage to

protect myself?


Asked on 6/15/09, 5:10 pm

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: Pension plan

As trustee of the pension plan, you have undertaken a fiduciary duty to all plan participants, a duty of care and the responsibility to assure that the plan is in compliance with all rules and regulations. You should be entitled to legal and accounting counsel to help you in the performance of your duties. It is always beneficial to have professional liability coverage, and an agreement with the group members to reimburse you for any expense, cost or loss you suffer acting on their behalf, in case you make a mistake.

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Answered on 6/15/09, 6:41 pm


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