Journal article
Three and possibly four lessons about ERISA that we should, but probably will not, learn from Enron
St. John's law review, Vol.76(4), p855
01 Oct 2002
Abstract
This Article focuses on three particular shortcomings of ERISA:. 1. sections 404(a)(2)6 and 407(b), which for defined contribution plans relax regulatory requirements restricting investment in stock of the sponsoring employer, 2. ERISA section 404(c), which provides incentives for firms sponsoring defined contribution plans to shift responsibility for portfolio allocation to plan participants, and 3. ERISA section 408(c), which expressly permits directors and employees of a plan's sponsor to serve as plan fiduciaries and implicitly permits them to make critical judgments on issues pitting the interest of the plan's sponsor (or the managing employees of the sponsor) against those of plan participants. The Article also takes a brief look at another problem with the statute (at least as it has been interpreted by the Supreme Court), which may yet become part of the Enron story: ERISA sections 502(a)(2)10 and (a)(3), which in many instances bar participants from securing make-whole remedies against individuals who participate in fiduciary breaches that harm them individually rather than harm the plan as a whole.
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Details
- Title
- Three and possibly four lessons about ERISA that we should, but probably will not, learn from Enron
- Creators
- Norman Stein
- Publication Details
- St. John's law review, Vol.76(4), p855
- Publisher
- St. John's Law Review Association
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Thomas R. Kline School of Law
- Identifiers
- 991021867173004721