June 5, 2015
Companies and in-house fiduciaries face increasing scrutiny these days over their 401(k) and other retirement plans. This was underscored again recently by a key Supreme Court ruling. In Tibble v. Edison International, the U.S. Supreme Court held that an employer’s duty to monitor its 401(k) plan investment options does not end with the selection of the investments. Rather, employers have an ongoing fiduciary duty to have a “regular review” of their plans’ investment funds to ensure that they continue to be appropriate.

Now more than ever, fiduciaries must take steps to ensure they are fulfilling their statutory duties when they select and review the assets in their companies’ retirement plans. The Supreme Court’s decision in Tibble comes on the heels of the U.S. Department of Labor’s recent proposal of new fiduciary rules that would restrict investment advisors to ERISA-covered retirement plans (see prior analysis here). Going forward, we expect the DOL and other agencies, as well as reviewing courts, to be more active in examining alleged fiduciary breaches.

What justification did the Court provide in its decision on Tibble? Please click here to read more.