Posted on May 28, 2015 by Beth Krasnow
Supreme Court’s Ruling in Tibble v. Edison: Huge Victory for 401(K) Plan Participants
Beth Dworken Krasnow
On May 18, the United States Supreme Court issued its decision in Tibble v. Edison International, ruling that Plan Sponsors have a continuing duty to review investments in Retirement Plans and to decide whether or not to keep or sell them. This decision overruled the lower courts that barred the claim under the statute of limitations.
In its decision, the Supreme Court found that Plan Trustees “have a continuing duty to monitor trust investments and remove imprudent ones. This continuing duty exists separate and apart from the trustee’s duty to exercise prudence in selecting investments at the outset.”
Since Plan Participants aren’t able to select the funds within their Plan offering, they rely on Plan Trustees, and other Plan Fiduciaries, to offer the best available funds at the best available pricing. For most Americans this is the largest segment of their retirement savings and they look to Plan Fiduciaries to get it right. Continue reading “The Ruling in Tibble v. Edison: Huge Victory for Participants” »