Employees May Sue Over 401(k) Mismanagement
Employees may file individual lawsuits against their employers over the mismanagement of 401(k) retirement investment plans, the U.S. Supreme Court ruled on Wednesday. In a unanimous decision, the Court determined that the Employee Retirement Income Security Act of 1974 (ERISA) authorizes "recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account" -- not just suits for actions that affect the entire plan. The Washington Post reports that over 50 million employees have almost $3 trillion invested in 401(k) plans.
- Read the U.S. Supreme Court Decision (FindLaw)
- Washington Post: Supreme Court Rules Employees Can Sue Over 401(k) Misconduct
- A Look at 401(k) Plans for Employees (FindLaw)
- Retirement Plan FAQ (FindLaw)