In case you haven’t been paying close attention, the recent 9th Circuit decision in Tibble v. Edison has major implications — both good and bad — for plan advisors. This is highlighted eloquently in a blog post by ERISA fiduciary expert Fred Reish.
The bottom line is that plan advisors and their clients have to understand what share classes are available and exercise their purchasing power to get the best deal for participants under the general obligation of making sure that fees are reasonable. But there’s more: Mutual funds can have 10 or more share classes, and it can get even more complicated with group annuities and separate accounts.
The good news: It’s likely that only experienced plan advisors will know about Tibble and will be able to navigate the retirement share class waters. The bad news: More litigation is likely.
