In May, the Supreme Court issued a ruling in relation to a lawsuit between employees and their employers regarding sponsorship of a company 401(k) plan. The suit, Tibble v. Edison International, re-emphasizes the employer’s fiduciary responsibility to do what is in the best interest of employees when developing and monitoring retirement plans and their fees.
Employees at Edison International maintained that their employer failed in its fiduciary duty to its employees by offering funds with high costs as opposed to similar lower cost options. The Supreme Court agreed with the employees, ruling that employers must “monitor trust investments and remove imprudent ones.”
In light of this ruling, we encourage all 401(k) plan providers to evaluate your investment options and fee structure with your custodian and/or trustee on a regular basis. Please contact us if you have any questions or if you need assistance with your benefit plans.