Monday, March 03, 2008

Employer 401[k]s Not Immune from Legal Action

A unanimous recent Supreme Court decision allows individual investors in 401[k] deferred compensation plans standing to sue for losses. The specific case involved a investor which asked pension administrators to move funds to less risky investments. He estimated losses at $150,000 when they failed to do so. The Bush administration favored the right to sue while business groups felt that standing to sue was inappropriate.

Probably the right call by the Supremes; certainly, this decision puts more responsibility on pension plan administrators to be responsive to the desires of investors. A safe alternative for employers: allow employee investors a choice of mutual fund investments.


Post a Comment

<< Home

My blog is worth $7,903.56.
How much is your blog worth?