ERIC joined the U.S. Chamber of Commerce, the American Benefits Council, the Securities Industry and Financial Markets Association, the American Retirement Association, the National Association of Manufacturers, and the Business Roundtable in filing an amicus brief in the case Brotherston v. Putnam Investments. The amicus brief encourages the U.S. Supreme Court to rule on two issues:
- That in ERISA cases the plaintiff has the burden of proving the causation element of a fiduciary-based claim
- That a plaintiff cannot prove loss simply by comparing the investment returns or fees of a portfolio of index mutual funds offered by a low-cost competitor, without requiring any assessment of whether the funds are, in fact, comparable or whether the proposed alternatives would have been appropriate for the plan given the plan’s purposes, terms, investment strategy, and risk and return objectives.
This case could have a profound effect on plan sponsors as it represents a threat to our ability to provide quality defined contribution retirement options to employees.
Click here to read the amicus brief.