In a unanimous decision, the Supreme Court has ruled in favor of participants in Edison International’s 401(k) plan who claimed company fiduciaries violated their duty to monitor three retail-class mutual funds.
The decision in Tibble vs. Edison International overturns the ruling of the 9th Circuit Court of Appeals, which upheld a ruling from U.S. District Court for the Central District of California in favor of Edison.
“ERISA’s fiduciary duty is derived from the common law of trusts, which provides that a trustee has a continuing duty–separate and apart from the duty to exercise prudence in selecting investments at the outset—to monitor, and remove imprudent, trust investments,” wrote Justice Stephen Breyer, who delivered the opinion for the court.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
