How Supreme Court justices are leaning in major 401(k) case over private funds and underperformance

Live updates

1. 1h ago

   Supreme Court Weighs 401(k) Case on Private Fund Underperformance

   The US Supreme Court heard arguments in Anderson v. Intel, a case that could determine whether 401(k) underperformance claims must include a "meaningful benchmark". The case has significant implications for employers and asset managers. The justices seemed skeptical of a challenge to private equity in 401(k) plans, with some expressing concerns about comparing apples to apples in assessing investment choices. A ruling could reshape how 401(k) plans incorporate private funds.

   Why it matters

   The case centers on a dispute over Intel's 401(k) plan, with plaintiffs arguing that the plan's use of private funds resulted in underperformance. The outcome could impact the retirement savings of millions of Americans and influence how employers select investment options for their 401(k) plans. The case also has implications for the Labor Department's rules on private investments in retirement plans. The Supreme Court's decision could provide clarity on the requirements for 401(k) plan fiduciaries.

   What is confirmed

   • The Supreme Court heard arguments in Anderson v. Intel on October 6.
   • The case could reshape how 401(k) plans incorporate private funds.
   • Justices expressed skepticism about comparing apples to apples in assessing investment choices.
   • The case has significant implications for employers and asset managers.

   Still unconfirmed

   • The retirement industry wants firm 'meaningful benchmarks' guidelines from the Supreme Court to cut litigation risk.

   What to watch next

   • The Supreme Court's ruling in Anderson v. Intel
   • The Labor Department's upcoming rules on private investments in retirement plans
   • The potential impact on 401(k) plan fiduciaries and employers
   Sources used for this update (11)

   1. CNBC — How Supreme Court justices are leaning in major 401(k) case over private funds and underperformance
   2. SCOTUSblog — Justices emphasize comparing apples to apples in assessing investment choices for retirement funds
   3. WSJ — Supreme Court Sounds Skeptical of Challenge to Private Equity in 401(k)s
   4. plansponsor — Beyond ‘Meaningful Benchmarks’: What Sponsors, Fiduciaries Can Learn From Intel Oral Arguments
   5. ua.news — US Supreme Court hears arguments in Intel plan case — CNBC
   6. Pensions & Investments — Retirement industry wants firm ‘meaningful benchmarks’ guidelines from the Supreme Court to cut litigation risk
   7. Pensions & Investments — Intel Supreme Court case puts DOL’s alternatives rule on a ‘sticky wicket’
   8. www.briefs.co — Supreme Court case could reshape whether 401(k)s add private funds
   9. Newsweek — Neil Gorsuch Cautions Supreme Court on Retirement Fund Case Question
   10. www.cnbc.com — Supreme Court weighs 401 (k) case about private funds ... - CNBC
   11. angelinvestorsnetwork.com — Supreme Court Hears Intel 401 (k) Private Funds Case
   confidence 85%