Supreme Trouble with Tibble

While the Supreme Court ruled in the monumental 401(k) case Tibble v. Edison that mostly dealt with statute of limitations issues, one could read something into it a little more.

Tibble was the case where the District Court held that a plan sponsor violated its duty of prudence as a plan fiduciary by not monitoring the plan’s investments. While the Court held that a plan’s selection of investments and failing to monitor is a continuing breach, what they said as part of their ruling should make any plan provider or plan sponsor to take pause:

“In short, under trust law, a fiduciary normally has a continuing duty of some kind to monitor investments and remove imprudent ones. A plaintiff may allege that a fiduciary breached the duty of prudence by failing to properly monitor investments and remove imprudent ones. In such a case, so long as the alleged breach of the continuing duty occurred within six years of suit, the claim is timely.”

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