From a press release:
The department is providing guidance to fiduciaries, investment managers and other investment service providers to plans who believe they may have exposure to losses on investments with entities related to the Madoff firm. The guidance also provides steps that can be taken to assess and protect the interests of plans, participants and beneficiaries under the Employee Retirement Income Security Act (ERISA).
The main theme of the guidance here is to remind fiduciaries that they are required under ERISA to take “appropriate steps. . . to assess and protect the interests of the plan and its participants and beneficiaries.” The DOL provides a list of recommended steps, but indicates through the language “may include” that fiduciaries may need to take other steps as they deem appropriate. The list of steps provided by the DOL are as follows:
Request disclosures from investment managers, fund managers, and other investment intermediaries regarding the plan’s potential exposure to Madoff-related losses; Seek advice regarding the likelihood of losses due to investments that may be at risk; Make appropriate disclosures to other plan fiduciaries and plan participants and beneficiaries; and Consider whether the plan has claims that are reasonably likely to lead to recovery of Madoff-related losses that should be asserted against responsible fiduciaries or other intermediaries who placed plan assets with Madoff entities, as well as claims against the Madoff bankruptcy estate.
The DOL warns fiduciaries to make sure that “claims are filed in accordance with applicable filing deadlines such as those applicable to bankruptcy claims and for coverage by the Securities Investor Protection Corporation (SIPC).”
Plan Advisor.com has more info on the deadlines for claims here.