Meaningful Benchmark Fight Reaches Supreme Court as Private Equity Push Expands 401k Risk
Of Counsel Michelle Capezza was quoted in a Fiduciary News article analyzing a Supreme Court case that could redefine ERISA litigation standards by requiring plaintiffs to plead a “meaningful benchmark” when alleging imprudent retirement plan investments. Her comments address how a potential ruling may affect fiduciary decision-making, particularly when plan committees consider alternative or illiquid investment strategies.
In the article, Michelle explains that regardless of how the Supreme Court rules, fiduciaries must continue to rely on disciplined governance and documentation to demonstrate prudence: “It is anticipated that a ruling in the case will provide further guideposts for all plan fiduciaries to implement in their plan investment decision making processes in order to demonstrate prudent actions, which will assist plan fiduciaries in defending selection of alternative investment strategies where comparable investments are not available.”
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