DOL’s Push To Curb 401(k) Suits Could Face Court Challenges

Richard Shea’s commentary was featured in a Law360 article about the Department of Labor’s rule proposal that would establish a safe harbor to shield retirement plan fiduciaries from Employee Retirement Income Security Act litigation. That safe harbor, which is conditioned on following the agency’s process, would protect against allegations that plan fiduciaries breached ERISA’s fiduciary duty of prudence with regard to their selection of an investment fund, including investments that incorporate alternative assets.

Richard said the safe harbor would give fiduciaries “a single test for all investments.”

"I think it’s a real breakthrough technically, to [the DOL] providing more practical, granular advice to plan fiduciaries and to the courts,” Richard stated.