Litigation is on the rise around employer retirement plans, with over $100 million in damages claimed through breaches in plan administrator fiduciary duties over the past several years. Even the most respected employers are not safe from legal penalties associated with failed governance over corporate retirement benefits. That's because plan administrators are easy targets for lawsuits, especially those without fiduciary liability insurance.

With about $4.5 trillion in U.S. retirement accounts, it's more important than ever for fiduciaries to protect themselves and their employees from financial losses associated with the mismanagement of retirement plans. To avoid potential liability, and to operate in a way that makes for a better outcome if litigation is imminent, plan administrators must understand best practices when governing plans to ensure the best outcomes for their employees.

The below outlines some of the most common fiduciary mistakes and how to avoid them: