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Supreme Court ruling calls attention to the fiduciary duty to monitor 401(k) plan investments

ByMilliman Employee Benefits Research Group
2 June 2015
The Supreme Court’s ruling has called attention to the fiduciary duty to monitor 401(k) plan investments. The Court unanimously held that although the initial selection of plan investments occurred beyond ERISA’s six-year statute of limitations, a lawsuit by participants in a 401(k) savings plan may proceed on whether the plan fiduciaries breached their continuing duty to monitor and remove imprudent trust investments. In ruling this way, the Court found that a lawsuit against plan fiduciaries is timely filed if the participants’ claim alleging a breach of the continuing duty to monitor occurred within six years. This ruling may spur lawsuits by participants over plan fees.

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Milliman Employee Benefits Research Group

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