Confero Summer 2013: Issue 3 | Page 15

TIBBLE v. EDISON INTERNATIONAL What Does This Decision Mean For Plan Fiduciaries? By Angel L. Garrett, Trucker Huss APC “ In its detailed decision, the court addresses a myriad of issues that are essential for plan fiduciaries in understanding how to limit and avoid liability under the Employee Retirement Income Security Act of 1974 (“ERISA”) going forward.” O n March 21, 2013, the Ninth Circuit issued its opinion in Tibble v. Edison International, affirming the district court’s decision in a case where participants alleged that 401(k) plan fiduciaries breached their duties of loyalty and prudence by including certain investment options in the plan, such as retail-class mutual funds, and engaging in revenue sharing. This decision resulted from the plaintiffs’ appeal of the district court’s partial grant of summary judgment to the defendants, and the defendants’ cross-appeal of the posttrial decision. In its detailed decision, the court addresses a myriad of issues that are essential for plan fiduciaries in understanding how to limit and avoid liability under the Employee Retirement Income Security Act of 1974 (“ERISA”) going forward. Fiduciary Duty When Selecting Retail-Class Mutual Funds The Ninth Circuit upheld the lower court’s post-trial decision that the defendants acted imprudently by including retail-class shares of three mutual funds in the Edison 401(k) Savings Plan’s (“Plan”) investment menu without www.conferomag.com | 13