Court says 401(k) participants can sue plan administrators

[flashl]

WASHINGTON (AP) — The Supreme Court ruled Wednesday that individual participants in the most common type of retirement plan can sue under a pension protection law to recover their losses.

The unanimous decision has implications for 50 million workers with $2.7 trillion invested in 401(k) retirement plans.

James LaRue of Southlake, Texas, said the value of his stock market holdings plunged $150,000 when administrators at his retirement plan failed to follow his instructions to switch to safer investments.

...

Justice John Paul Stevens, in his opinion for the court, said that such lawsuits are allowed. "Fiduciary misconduct need not threaten the solvency of the entire plan to reduce benefits below the amount that participants would otherwise receive," Stevens said.

The decision overturned a ruling by the 4th U.S. Circuit Court of Appeals in Richmond, Va.

USA Today

[speedoo]

1. Good work by the supremes on this.

nt

[Quakerfriend]

2. Pardon me if I think this is a bit bogus. They really need to

provide us with more protection than this. eg, We should be able to sue plans that invest our money in places that carry false securities.

[InkAddict]

3. My ex-plan's administrator sent my distribution check

and paperwork to the employer's home address for sign-off(oops)rather than the address (place of business)specified in the letter they sent to me,(so they say), but that's not negligent or dishonest, just a clerical error--perhaps I could should have specified, in error, that their right leg needed amputation instead of the left one)

As a result, the check was "lost" at the employer's home (what, the dog ate it or they only open the junk mail?). I had to do all the legwork to get another check cut and sent; thereby making any timely payments on mounting bills, mortgage, etc... Timely, honest, disbursement could have made a difference even though it's true, the 401s value had jumped off the cliff like the Sundance Kid. (I didn't lose more income, while hunting down a new job, than it's value over 10 years of service.)

Now, I'm too optionless to sue.

Quote from my ex-employer with a smirk: "Poor people don't have choices."

[fasttense]

5. Don't listen to your ex-employer. Poor people Do have options.

There are several legal organizations who will take your case for little to nothing. But aside from that, you can vote the f**king thieves out of office. You can protest. And in the end you can make yourself such a nuisance that they may settle just to get you out of their hair. Where there's a will there's a way. Don't let them con you.

[mainegreen]

4. Good. n/t

[Common Sense Party]

6. Good for true cases of malicious negligence.

This is a horrible decision, though, that will open up the floodgates of people suing their employers if the stock market has a normal correction.