WASHINGTON--Individual participants in 401(k) retirement plans can sue under ERISA to recover their losses, the Supreme Court ruled yesterday in a case that has created concern within the insurance industry.
In a unanimous ruling (LaRue vs. DeWolf), the court said the Employee Retirement Income Security Act does permit an individual account holder to sue plan administrators for breaching their fiduciary duties.
The case revolved around language in ERISA that referred to recovering money for the retirement "plan," rather than an individual participant in the plan suing solely on his own behalf.
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