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Supreme Court Rejects Presumption of Prudence for ESOP Fiduciaries
SCOTUSblog Link to more items from this source
June 25, 2014
"According to the Court, ERISA's requirement that fiduciaries exclusively pursue the provision of 'benefits' to plan participants and their beneficiaries refers only to financial benefits, not 'nonpecuniary benefits like those supposed to arise from employee ownership of employer stock.' The Court likewise rejects the petitioners' related argument that the plan's mandate that fiduciaries invest in Fifth Third stock 'waive[s]' the usual ERISA duty of prudence. The opinion concludes that 'by contrast to the rule at common law, trust documents cannot excuse trustees from their duties under ERISA.'" [Fifth Third Bancorp v. Dudenhoeffer, No. 12-751 (U.S. June 25, 2014)]

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