PlanSponsor writes, "Money Market Returns Challenged In Latest ERISA Suit." It says, "Employees of Pioneer Natural Resources have filed an Employee Retirement Income Security Act (ERISA) lawsuit against their employer, alleging a variety of fiduciary breaches in the management of its 401(k) plan. A close look at the complaint offers plan officials some important -- if unwelcome -- insight about just how widespread ERISA-based litigation has become and how difficult it can be to avoid a challenge once the plan has gained the attention of the plaintiffs' bar. Perhaps most notably, in this suit the plan sponsor is called out for failing to remove a money market fund option that had low returns when a stable value fund was also already available in the plan, and yet other suits have been filed arguing essentially the exact opposite, that a given plan should have offered a money market fund option in place of a stable value fund. The suit, Barrett vs. Pioneer Natural Resources, was filed in the U.S. District Court for the District of Colorado.... The list of fiduciary breaches alleged goes as follows: "Failing to offer institutional class shares for mutual funds, which resulted in the participants paying excessive costs to invest in the funds; failing to make sure that plan fees were reasonable; and failing to remove the poorly performing money market fund when the better-performing stable value fund was already available, causing losses to plan participants who maintained excessively high cash balances in money market funds rather than the stable value fund, which offered higher returns and the same risk level.""

Email This Article

Use a comma or a semicolon to separate

captcha image