U.S. Supreme Court Allows Workers to Sue Over Losses to 401(k) Plans
In a recent decision, the U.S. 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 Supreme 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, LaRue v. DeWolff, Boberg, & Associates, arose over an employee who sued because his employer failed to make the changes he requested over a plan of two years and the mismanagement led to a loss of $150,000.
