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Supreme Court Holds Pension Trustees Accountable for High-Cost Mutual Fund Selection

Last year, the Supreme Court ruled that pension plan trustees could be sued for including risky company stock in defined-contribution funds. Now, in a unanimous decision, the Court determined that trustees have an ongoing fiduciary duty to choose lower-cost mutual funds when they are available.

In Tibble v. Edison, the Court reversed a lower court decision, holding instead that the “breach or violation” triggering the six-year statute of limitations under ERISA does not begin when investments are selected, but whenever a trustee violates his or her fiduciary duty, which, according to the Court, is a “continuing duty.” Click here to read the full article.

For information on how you can mitigate the risk of managing your company’s retirement plan by appointing an ERISA Section 3(38) investment manager, click here.

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