Does your 401(k) plan really offer the best investment choices for you? And is your employer reviewing those choices often enough?
Those questions are at the heart of a dispute that has made its way to the Supreme Court, which is hearing the arguments Tuesday. If the justices rule in favor of the plaintiffs, the case, Tibble v. Edison International, could have major implications for how companies run 401(k) plans.
The original suit claimed that Edison, the Rosemead, California–based utility, failed to fulfill its fiduciary responsibility to employees participating in its 401(k) plan because it offered several funds among the plan's investment offerings that had higher fees than other nearly identical funds.