Our Summer 2013 edition of Confero magazine focused on the Tibble v. Edison international case, where the federal circuit court affirmed a lower district court’s position on the fiduciary duties owed to 401(k) participants and employees. You can read the full article for details, but the crux of it is that plan participants can sue plan fiduciaries if they aren’t making prudent decisions on their behalf (in this case, picking expensive versions of mutual funds for their retirement plan).
Not satisfied with the results from the district court and circuit court, the defendants got their case appealed all the way to the Supreme Court – which issued their ruling yesterday. Again, the Supreme Court affirmed the decisions of the lower courts – assuring the rights of employees to sue their employers for imprudence. So, there really is no recourse for poor decision making in the eyes of the highest law of the land. Act prudently and in the best interest of those you serve – or face consequences.