401(k) Participants can sue legally for Retirement Money Management

The Supreme Court of United States yesterday gave a landmark decision bringing relief to many of the pensioners. The Supreme Court kept the right of pensioners or participants in 401(k) retirement plans, which enables them to take a legal course of action to sue the pension fund management companies, so as to recover the losses if they think their pension money accounts have been mishandled.

This is a big relief for the citizens of United States, especially the elderly, who are now solely relying upon the pension fund money which they have been contributing to and accumulating to since a very long time. This gives the participants a good chance to check how their money was treated in their 401(K) participation plans for retirement plans.

The decision was a clear victory for one James LaRue of Southlake, Tex., who claimed that he has lost around $150,000 because the administrating division managing his retirement plan did not follow his instructions, and did not invest his pension money as per his choice. It also involved the failure of the plan administrator to follow his instructions to switch his investments from one mutual fund to another. By extension, the ruling opens the door for other 401(k) participants to bring suits, although one lawyer who specializes in such issues said the decision was unlikely to open any floodgates.

USA leads the way – both in financial innovations as well as legal proceedings, keeping the individuals rights above one and all benefits. Hope to see the same being reflected in other countries.

Table of Contents