ESOP Administrators Have Duty to Employees, Supreme Court Says

The Supreme Court is looking out for Americans with employee stock ownership plans (ESOPs), a form of retirement plan. That’s what the justices essentially said in their unanimous June 25 decision in Fifth Third v. Dudenhoeffer, in which employees sued because their ESOP administrators invested in a way that caused them to lose money. In this case, the administrators, or “fiduciaries, had invested the employees’ money in the employer’s own stock even though they knew (according to the plaintiffs) that …

Risky 401(k) Investments: The Supreme Court Steps In

Do you know just how much you’re saving for your retirement? If so, you’re not alone. AARP studies show that most Americans 50 and older are thinking about and planning for their future financial security. So imagine, for a moment, that your company has a pretty generous 401(k) plan. That’s great, right? Well, in a case that the Supreme Court recently agreed to hear, the plaintiff employees say, “Not so much. Here’s what happened to them. Fifth Third Bank, a …