Supreme Court Rules 7th Circuit Erred in Annuity Plan Fiduciary Case
January 25, 2022 by Allison Bell
The U.S. Supreme Court ruled 8-0 on Monday that federal courts should look at more than a 403(b) retirement plan’s flexibility and investment menu size when deciding whether the administrators have met the Employee Retirement Income Security Act standard for the duty of prudence.
For life insurance agents and brokers who help clients with decisions about annuities — or with any other arrangements that involve a federal fiduciary standard — the ruling may mean that offering individual clients, or employer-sponsored plan participants, a wide range of choices will provide only limited protection against a federal suit alleging that a fiduciary acted in an imprudent way.
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