For more than half a century, millions of state and local public employees, most notably public-school workers, have been victimized by their employers. How so? By not taking seriously their role as fiduciary of the retirement savings plan they created.
With that said, on May 18, 2015 the Supreme Court ruled in Tibble vs. Edison International that the Fiduciary Standard requires that when a low-priced (no-load) fund is readily available for participant investment, the employer stands in breach of the Fiduciary Standard should the higher-priced, commission-based version of the same fund remain on the plan’s investment menu. This is what is terribly wrong with the majority of the nation’s defined-contribution pension plans. Two excellent reviews and summaries of the Tibble decision may be read at: http://goo.gl/a3LD0I and http://goo.gl/T8O5XX.
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