Oct. 2 (Bloomberg) — The U.S. Supreme Court will consider giving 401(k) participants more power to sue their plans over investments that impose excessive fees, accepting an appeal tied to a wave of suits against employers.
The appeal, filed by Edison International workers, contends that participants should be able to sue plans for retaining imprudent investments. A federal appeals court said a federal statute of limitations bars suits over investments added to a plan more than six years earlier.
The case comes to the Supreme Court amid intensified scrutiny of fees in retirement accounts, now the primary savings vehicle for old age. More than a dozen companies, including Lockheed Martin Corp. and ABB Ltd., have been sued since 2006. Americans held $6.6 trillion in 401(k)-type plans as of June 30, according to the Investment Company Institute.
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