In March 2020, I posted a blog reviewing the evolution of the legal analysis applied to a retirement plan’s holding of “employer securities” under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). See “If Your Retirement Plan Holds Employer Securities, Keep an Eye on the Jander Case.” In that blog, I reviewed the “Moench presumption” and the Supreme Court’s rejection of the “Moench presumption” in Fifth Third Bancorp v. Dudenhoeffer, 134 S.C. 2459 (2014).
In Dudenhoeffer, the Supreme Court announced a three-factor standard for ...
“Employer securities” in retirement plans have been the source of a significant amount of litigation under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). In general, “employer securities” are common stock issued by an employer of the employees covered by the retirement plan. In many cases, “employer securities” are traded on a national exchange which is registered with the U.S. Securities and Exchange Commission (the “SEC”).
In relevant part, ERISA Section 404 contains an exclusive purpose requirement which requires a ...