U.S. Supreme Court orders 401(k) sponsors to do the right thing
The U.S. Supreme Court ruled this week that employers have a duty to protect workers in their 401(k) plans from mutual funds that are too expensive or perform poorly.
Monday's unanimous ruling sends a strong signal that employers must improve their plans. And it comes just as the Obama administration prepares a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own.
The high court ruled on a class-action lawsuit against Edison International. St. Louis lawyer Jerome Schlichter, who has made a cause of suing 401(k) plans to get them to shape up, brought the case on behalf of 20,000 retirees and workers at the large Southern California utility company.
The case now returns to the lower court for final resolution.
http://www.msn.com/en-us/money/companies/us-courts-order-401-k-sponsors-to-do-the-right-thing/ar-BBk4w7g