Fiduciary Liability

[Randy Watson]

Found a provision in an EGTRRA volume submitter doc that requires a participant who alleges failure to implement investment direction to file a claim within the earlier of 60 days after the mailing of a document from which the error can be discovered or 1 year from the date of the related transaction error. Claims filed outside that period will be limited to the benefit determined if the claim were timely filed. What allows them to put this timing restriction on claims? Does it have to do with the calculation of the claimed loss?

[J Simmons]

Found a provision in an EGTRRA volume submitter doc that requires a participant who alleges failure to implement investment direction to file a claim within the earlier of 60 days after the mailing of a document from which the error can be discovered or 1 year from the date of the related transaction error. Claims filed outside that period will be limited to the benefit determined if the claim were timely filed. What allows them to put this timing restriction on claims? Does it have to do with the calculation of the claimed loss?

Randy, take a look at the recent decision in Scharff v. Raytheon Co. Short Term Disability Plan, 9th Cir., No. 07-55951