Garra E. Brown Bartley, Carolyn M. Trenda, G. William Tysse, and Jonathan Y. Ellis of McGuireWoods LLP, have made available for download their article, “U.S. Supreme Court Reinforces ERISA Fiduciary Duty to Monitor Investment Options,” published on McGuireWoods’s website. The abstract is as follows:
On Jan. 24, 2022, the U.S. Supreme Court vacated the U.S. Court of Appeals for the Seventh Circuit’s ruling in Hughes v. Northwestern University, and remanded the case for further consideration, bringing new life to current and former employees’ claims that Northwestern had violated the duty of prudence required of all plan fiduciaries under the Employee Retirement Income Security Act of 1974 (ERISA).
In vacating the Seventh Circuit’s ruling, the Supreme Court reiterated its holding in Tibble v. Edison Int’l, 575 U.S. 523 (2015), and its emphasis of context-specific inquiries as the cornerstone of ERISA’s fiduciary duty of prudence when selecting investment menus for a plan with participant-directed investment accounts.
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal