Commentary: Yesterdays ruling in
The employer-based retirement plan model has been full of flaws for years, and this ruling is a step in the right direction. Tibble vs. Edison is just one example of the flurry of recent
The ruling means that 401(k) plan sponsors now must continuously monitor the investment options they offer participants. This will make it easier for employees to push lawsuits over excessive fees and underperforming funds. While there have been many previous lawsuits, this one carries a significant amount of weight in making it easier for investors to sue over bad 401(k) plans.
Plan advisers were already facing heightened scrutiny from the
In the wake of this ruling, were sure to see a number of employers eliminate their plans altogether, as the added liability may not be worth hassle. As employers start dropping their 401(k) offerings, many more consumers could be left to fend for themselves when it comes to retirement.
Chris Markowski has carried the titles of author, investment banker, equity analyst, muckraker, all around trouble-maker, and most importantly consumer advocate. He is the personality behind