Supreme Court Rules Individual Retirement Plan Participants Can Sue Employers Over 401(k) Losses | workforce.com
As mentioned elsewhere on this blog, I am recovering from the flu. I am horribly behind in my reading and even further behind in my posting. Please pardon the bare bones of the posts over the next week. I am trying to get out what appears important but not adding much in commentary - there is just not enough time right now.
Supreme Court Rules Individual Retirement Plan Participants Can Sue Employers Over 401(k) Losses | workforce.com: "The Supreme Court has ruled that individual participants in a 401(k) plan can sue their employers over losses, a move that many observers say could result in a deluge of lawsuits for plan sponsors."
Until now, plan participants could only sue employers over losses in their 401(k) plans through class-action suits. But in its opinion Wednesday, February 20, the Supreme Court said that under the Employee Retirement Income Security Act, individual employees can sue plan sponsors for losses on behalf of the plan.
“This should be a wakeup call to employers,” says Don Stone, president of Plan Sponsor Advisors, a Chicago-based 401(k) consultant. “They need to recognize that as fiduciaries, they have responsibilities and there is going to be a spotlight shined on them.”