June 20, 2022

Kim Jones Discusses Defined Contribution Plan Sponsors and Arbitration Clauses With Pensions & Investments

In an article titled, “DC Arbitration Clauses Facing Uncertain Fate,” Pensions & Investments spoke to benefits and executive compensation partner Kim Jones about defined contribution (DC) plan sponsors and arbitration clauses in plan documents.

Referring to sponsors, Jones said that arbitration clauses are “not in the majority of DC plans.” She explained that some sponsors “believe it’s a best line of defense” against fiduciary breach lawsuits and that in the past two years, 10 to 15 of her clients have talked to her about arbitration clauses, with five to seven adding them.

However, the cons are more complex, Jones noted. For example, arbitrators aren’t held to any legal precedent even though judges are, and there’s virtually no chance of appealing an arbitrator’s decision unless the parties could prove corruption, fraud or some other significant error, she said.

全文

Related Industries

The Faegre Baker Daniels website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Baker Daniels' cookies information for more details.