Supreme Court Hits Pension Plans Over High-Cost Mutual Funds
ByEmployers who offer retirement plans must pay closer attention to the fee structure of investments under a U.S. Supreme Court decision rejecting the idea that a six-year statute of limitations under the Employment Retirement Income Security Act dates from when those investments enter the fund.
The unanimous, 8-page decision in Tibble v. Edisonsupports the arguments of class-action attorneys who increasingly are suing over high mutual fund fees and the choice of investments within so-called defined-contribution funds. The Supreme Court last year ruled that trustees may be sued for including potentially risky company stock in defined-contribution funds, even though individual employees decide whether to buy it…
Supreme Court Hits Pension Plans Over High-Cost Mutual Funds
