Fiduciaries Be Diligent, Says Supreme Court (article)
Fiduciaries Be Diligent, Says Supreme Court
In a recent Supreme Court case (Tibble v. Edison International, 2015 WL 2340845 (U.S. 2015)), several important issues are at stake. Of particular note, the Supreme Court underscores, without further defining, the on-going duty of a qualified plan fiduciary to monitor plan investments. Specifically, a qualified plan must be administered prudently and for the exclusive benefit of plan participants. There is a duty to select investments prudently, and according to the Supreme Court, there is an additional and distinct duty to monitor those investments. The Supreme Court is returning the case to the Ninth Circuit Court to discern whether, in fact, this duty was accomplished.
This opinion, affirming on-going fiduciary duties, effectively extends ERISA’s six-year statute of limitations, applicable to claims of a breach of fiduciary duty. Thus, the statute of limitation continues as long as the challenged behavior continues.
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