Managing Principal Lee Heavner and Affiliate Susan Mangiero Publish Article on Economic Analysis in Fiduciary Monitoring Disputes Post-Tibble

July 01, 2015

Fiduciary monitoring has become a hot topic as a result of the U.S. Supreme Court's decision in Tibble v. Edison International, which stated that plan fiduciaries have a responsibility to monitor investments and remove imprudent ones. The decision is important because of the amount of assets in ERISA retirement plans -- the U.S. Department of Labor reports that approximately $7 trillion were held in ERISA retirement plans as of 2012. This decision also comes against a backdrop of growing ERISA litigation -- Benefits Pro reports that in 2014 alone, ERISA litigation settlements exceeded $1.4 billion, and this amount excludes the substantial legal costs of defending the cases.

In a recent article, "Economic Analysis in Fiduciary Monitoring Disputes Following the Supreme Court's 'Tibble' Ruling" (Bloomberg BNA's Pensions & Benefits Daily, June 24, 2015), Analysis Group Managing Principal D. Lee Heavner and Fiduciary Leadership LLC Managing Director and Analysis Group affiliate Susan Mangiero explain that what constitutes a reasonable monitoring process may be influenced by plan- and investment-specific factors, as well as the expected benefits and costs of different monitoring activities. The authors also discuss the complexities involved in calculating economic damages in fiduciary monitoring disputes. These are important issues that plan sponsors, fiduciaries, and ERISA lawyers and experts will have to address if, as expected, further challenges to fiduciary monitoring of investments emerge post-Tibble.

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