Brad Campbell Addresses ERISA Development and Plan Management With Pensions & Investments

In “How retirement security litigation has impacted the defined contribution landscape,” Pensions & Investments turned to benefits and executive compensation partner Brad Campbell for insight on the role of litigation in the development of the Employee Retirement Income Security Act and in plan management.

“The role of litigation depends on where you stand,” Campbell noted. “I don't think lawsuits have made improvements.”

Instead, ERISA lawsuits have perpetuated a series of “fiduciary myths,” Campbell asserted. He added that those myths include assertions that passive investments reduce litigation risk vs. active investments, that lower fees reduce litigation risk, and that short-term performance is a reason for removing an investment from a plan lineup.

The publication also reported that ERISA attorneys and D.C. consultants complain that more firms are filing copycat complaints, hoping a receptive judge will allow their lawsuit to get past the motion-to-dismiss stage leading to an eventual settlement. “That's the problem with the whole tort system,” Campbell said.

The full article is available for Pensions & Investments subscribers.