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Employment Law Alert: Supreme Court Asks Solicitor General To Weigh In On Whether A Private Cause Of Action Exists For An Individual Seeking To Recover 401(k)-Related Losses Allegedly Caused By Plan Administrator’s Breach Of Fiduciary Duty

The U.S. Supreme Court asked the Solicitor General to file a brief in a case, brought under ERISA, by an employee who claims that the administrator of his employer’s 401(k) plan failed to make his requested investment changes, resulting in a loss to him. At issue is whether Section 502 of ERISA allows for such private causes of action by plan participants who, as in this case, allege that a breach of the plan administrator’s fiduciary duty resulted in losses to an individual’s 401(k) fund. By requesting a brief from the Solicitor General, the Court is seeking the federal government’s position on this issue.

Bottom Line

Assuming that such private causes of action are sanctioned, this will obviously have a huge impact on 401(k) plan administrators. We will keep you informed of developments in this case as they transpire.

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