16 06, 2015

The Supreme Court’s Misplaced Ruling on 401(k) Plans

2015-06-16T00:09:17-07:00June 16th, 2015|Categories: 401(k)|Tags: , |

Last month, the Supreme Court effectively expanded employers’ responsibility for the performance of the funds in their 401(k) plans, ruling that employers must regularly monitor the investment options in their plan and remove funds with high fees or poor returns. The ruling’s goal, protecting retirement savers from high fees and poor performance, is both admirable and desperately needed. More than half of all workers now rely on 401(k)s for retirement, yet high 401(k) fees are still costing savers dearly: [...]

2 06, 2015

DC execs wary about what Tibble ruling didn’t say

2015-06-02T20:17:16-07:00June 2nd, 2015|Categories: Pension Reform|Tags: , |

Attorneys who represent defined contribution plan sponsors and DC plan consultants say the U.S. Supreme Court’s recent decision in Tibble et al. vs. Edison International has created uncertainty for plan executives. While the court’s unanimous ruling reaffirmed and clarified what plan executives should have been doing all along — continuously monitoring investments — it didn’t establish guidelines for that monitoring, they said. The court sent the case back to a federal appeals court to outline standards. “We express no [...]

29 05, 2015

U.S. Supreme Court Issues Game-Changing Decision for 401(k) Plans

2015-05-29T18:35:23-07:00May 29th, 2015|Categories: 401(k)|Tags: , |

The U.S. Supreme Court ruled unanimously on May 18 that employers have a continuing duty under ERISA to monitor investments and to remove imprudent ones. TIbble v. Edison International (the subject of a previous report on LBN) is the first 401(k) ever decided by the Court. The Supreme Court’s ruling overruled a Court of Appeals decision limiting the number of employees who could make claims. The decision could make it easier for 401(k) participants to sue their employers for [...]

20 05, 2015

Supreme Court: Employers can be sued over high fees in retirement plans

2015-05-20T18:00:09-07:00May 20th, 2015|Categories: Retirement|Tags: , |

The Supreme Court put employers on notice Monday that they can be sued if their retirement plans offer employees mutual funds with unnecessarily high fees. In a 9-0 decision, the justices revived a lawsuit against Edison International and said the company had a “continuing duty to monitor” the investments that were offered to its employees. The decision is likely to boost a series of class-action suits pending against companies allegedly offering funds with high fees. […]

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