Retirement Planning: The U.S. Supreme Court rules employers must protect workers 401(k) plans. Thoughts?

2015-05-21T13:05:47-04:00

The U.S. Supreme Court ruled this week that employers have a duty to protect workers in their 401(k) plans from mutual funds that are too expensive or perform poorly.

Monday's unanimous ruling sends a strong signal that employers must improve their plans. And it comes just as the Obama administration prepares a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own.

http://www.msn.com/en-us/money/companies/us-courts-order-401-k-sponsors-to-do-the-right-thing/ar-BBk4w7g

U.S. courts order 401(k) sponsors to do the right thing

The U.S. Supreme Court ruled this week that employers have a duty to protect workers in their 401(k) plans from mutual funds that are too expensive or perform poorly.

Response by SCPO David Lockwood made May 21 at 2015 1:10 PM

2015-05-21T13:10:32-04:00

Excellent! The company I work for currently already does this. Will this cover TSP?

Response by CPT Zachary Brooks made May 21 at 2015 1:40 PM

2015-05-21T13:40:48-04:00

This is good to hear. It seems like one of the few good changes since doing away with pensions as a whole all those years ago.

Also: "And it comes just as the Obama administration prepares a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own."

Has rules and laws such as that stopped these advisors from putting their personal interests ahead of others before? I think not!

Response by SGT James Elphick made May 21 at 2015 2:13 PM

2015-05-21T14:13:19-04:00

I think it is sad that we had to have this ruling in the first place. What happened to the American Dream and everyone working toward a better, more prosperous country instead of just a few better, more prosperous individuals?

Response by SSG Donald Mceuen made May 21 at 2015 2:17 PM

2015-05-21T14:17:54-04:00

That could be hard since they wan't you to control your investments.
So if you are a person that takes a chance and you can not move your money
to make you more money. So now that means it will be hard to make educated
investments with your own money. It was very hard during the crash and i lost my ass. But that was my choice not anyone the company picked. So that keeps me from going off on someone that lost my money. I also learned alot on where to put
my money.

Response by Capt Private RallyPoint Member made May 21 at 2015 3:00 PM

2015-05-21T15:00:12-04:00

I think the supreme court got it right. The pension is part of the employment contract and corporations should not be able to renege on it