TheCorporateCounsel.net

Many have been warning about creating securities law liability for ERISA plan fiduciaries where a “Summary Plan Description” for a 401(k) plan that offers a “Company Stock Fund” investment choice incorporates SEC filings by reference (and the filings later turn out to be inaccurate). Here are the results from a recent poll about what companies are doing in response:

1. Our company:
– Recently separated the 401k SPD from the prospectus – 17%
– Always separated the 401k SPD from the prospectus – 27%
– Is considering separating the 401k SPD from the prospectus – 33%
– Has decided to not separate the 401k SPD from the prospectus – 23%

Please take a moment to participate in this “Quick Survey on Lead Directors” and “Quick Survey on Rule 10b5-1 Plan Practices.”

Liability for 401(k) SPDs

In this CompensationStandards.com podcast, Mike Melbinger of Winston & Strawn discusses the risks of not separating your 401(k) summary plan description from the prospectus, including:

– I have seen you blog on this issue of securities law liability and 401(k) Plan summary plan descriptions, but as a compensation and securities lawyer, what exactly is the issue we need to worry about?
– So what should companies do now?
– I have run this poll on the topic – but what are you seeing – are companies moving to separate the SPD from the prospectus?

Transcript: “D&O Insurance Today”

I have posted the transcript for our recent webcast: “D&O Insurance Today.”

– Broc Romanek