Supreme Court Receptive to Investors in 401(k) Case

via Wall Street Journal

WASHINGTON—The Supreme Court on Tuesday signaled it was likely to side with 401(k) investors in a case that examines when workers can sue businesses for offering high-cost mutual-fund options in retirement plans when cheaper options are available.

The justices, in a case examining the 401(k) offerings by energy holding company Edison International , suggested a San Francisco-based federal appeals court was wrong when it held a legal time limit barred employees from suing over allegedly higher-cost funds that had been offered as options in the 401(k) for more than six years.

The Supreme Court’s hourlong oral argument largely proceeded on the assumption the appeals court applied the time limit too strictly. Justice Samuel Alito said both sides in the case seemed to agree that such lawsuits are “not categorically barred.”

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Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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