SUPREME COURT ALLOWS WORKERS TO SUE OVER LOSSES TO 401(k) PLANS
In a recent decision, the United States Supreme Court has allowed employees the right to sue over losses to their 401(k) plans in certain circumstances. This is a significant issue in the field of employment law as more employees will retire in the coming years in numbers far greater than ever before and, thus, have a strong interest in their pension and retirement plans.
The Court held that recovery is authorized where the fiduciary breaches are such that, “they impair the value of plan assets in a participant’s individual account.” The case before the Court arose over an employee who sued because his employer failed to make the changes he requested over a plan of two years. This mismanagement led to a loss of $150,000. The case is LaRue v. DeWolff, Boberg, & Associates.
The issues with respect to one’s retirement are quite complex and it entails both financial and legal aspects. Obtaining advice from professionals in those areas is essential in ensuring a sound investment for the future, relating to both financial and legal consequences.
