Tag: Retirement

  • Clemson President Announces Sudden Retirement

    Clemson President Announces Sudden Retirement

    Clemson president Jim Clements is retiring at the end of the month.

    sbrogan/E+/Getty Images

    Clemson University president Jim Clements is retiring at the end of the month, bringing an abrupt end to his 12-year tenure at the helm of the public institution in South Carolina.

    He cited “health and family” as his reasons for stepping down just over a year after he signed a five-year contract extension.

    “Clemson has been my home and passion, yet my greatest love is for my wife, Beth, and our children and grandchildren. Life moves quickly, and I don’t want to miss what truly matters—the major milestones and the quiet, everyday joys,” Clements wrote in a Tuesday message announcing his retirement. “Those are the moments I want to experience and hold close.”

    Clements joined Clemson in 2013 after nearly five years as president of West Virginia University.

    He cited a record number of applications and Clemson’s attainment of Research-1 status under the Carnegie classification system, achieved in 2013, among his accomplishments. Board of Trustees chair Kim Wilkerson also said in her own message that under Clements’s leadership, “Clemson achieved record enrollment and graduation rates, expanded research initiatives and secured historic philanthropic support.”

    More recently, however, Clements courted controversy after the university fired three employees for allegedly making inappropriate remarks about the death of Charlie Kirk. The university appeared to claim in a social media post related to the firings that First Amendment rights do not “extend to speech that incites harm or undermines the dignity of others.”

    Clemson also shut down faculty and staff affinity groups intended to advise leaders on how to support Black, Latino, LGBTQ+ students, veterans and others in September. At the time, Clemson officials claimed, “The commissions have successfully fulfilled their important charge.”

    Now Clemson is expected to name an interim president at an emergency board meeting Wednesday. Provost Bob Jones, who was planning to retire, is expected to be named to the interim role and to “serve until a successor is named,” according to Wilkerson’s statement.

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  • On-the-Job Training on Offer at Campus Opening Retirement Home

    On-the-Job Training on Offer at Campus Opening Retirement Home

    The “intergenerational retirement living community” about to sprout on an Australian university’s suburban campus will generate clinical training opportunities for students while it “strengthens the social fabric” of the city, its advocates claim.

    The University of Canberra plans to convert unused land—currently occupied by gum trees, grassland, dilapidated fencing and the odd hungry kangaroo—into a mini village complete with 230 “independent living units,” a 180-bed care facility, a retail center and health services on tap.

    The project is designed to ease housing shortages and help older Australians in “downsizing” while promoting intergenerational mingling.

    It will also provide practical educational opportunities across multiple disciplines. “Our students here, from allied health through to the built environment … nursing and many other vocations, will be able to get on-the-job training whilst they are at the university,” said Vice Chancellor Bill Shorten.

    “University education makes a lot more sense when … you’re practicing what you’re learning. Nothing beats that real-world experience.”

    Under a deal signed with property developers Pariter and residential aged care provider Opal, the university will lease the 2.2-hectare site—nestled between UC’s hospital and health hub—for 100 years. The two companies will bankroll the project’s capital costs, estimated at about 150 million Australian dollars ($99.2 million).

    The university will pocket “lease receipts and revenue share,” although it declined to say how much. The deal will facilitate collaborative employment and “co-designed” learning programs, along with joint research projects and student placements on campus and elsewhere.

    The older residents will be encouraged to engage with each other and their younger neighbors, including the more than 2,000 students who live on campus. Pedestrian links will connect them to cafés, the library, medical services and nearby bushland.

    Shorten said the construction still requires final approval, but he expects it to begin within about two years and finish within four. He insisted that the project, which had been the subject of long-standing negotiations with various partners, would have gone ahead irrespective of the university’s financial position.

    “It just makes sense,” he told reporters. “This is an idea [whose] time has come. I think this is what modern universities should be doing. At the end of the day, trying to suppress a good idea is like trying to keep a ball below the surface of the water.”

    UC is among a throng of Australian universities that are converting parts of their considerable landholdings into revenue-earning opportunities matched to their educational and community support missions. The University of Wollongong is seeking final development approval for an “intergenerational university community” that features health services, integrated research and education spaces, an early-learning center and accommodation for more than 400 older residents on its seaside campus.

    La Trobe and Flinders Universities have also flagged the possible establishment of aged care facilities as part of multibillion-dollar developments of their campuses in suburban Melbourne and Adelaide.

    Opal’s director of communications and sustainability, Rosanne Cartwright, said similar precincts were springing up in countries with aging demographics including Germany, Japan and the Netherlands. “The aging population is a global issue that needs to be solved locally,” Cartwright said.

    “Australians across every generation are dealing with loneliness as a real issue,” she added. “Younger people need to look after older people and older people need to look after younger people.”

    Commercial redevelopments on campus have sparked criticism that vice chancellors are diverging from their educational mission into property speculation—grievances that run strong if universities invest in capital projects while reducing staff to save costs.

    The National Tertiary Education Union said it was comfortable with the UC project “so long as it contributes to rather than detracts from” teaching and research.

    “From time to time there are some objections to using university land in that way, but it’s not really in short supply at the University of Canberra,” said the union’s divisional secretary, Lachlan Clohesy. “If there’s revenue … supplementing the university and therefore able to contribute to the core mission, that’s a good thing.”

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  • Helping College Students Save for Retirement

    Helping College Students Save for Retirement

    High tuition rates and cost-of-living expenses can make it difficult for students to make ends meet in the present, but that doesn’t mean they’re not worried about future financial burdens. A 2025 Student Voice survey found that one in five respondents say their biggest source of stress when considering their post-college future is “affording life after graduation.”

    A 2024 survey by Handshake found that more than 40 percent of students have thought at least “a fair amount” about planning for retirement; 15 percent say it’s a major focus area. However, a majority of young people are not saving for retirement (61 percent), according to a 2024 survey by CNBC and Generation Lab.

    By the numbers: Nationally, about three in five adults have a retirement savings plan, with more college graduates (81 percent) likely to have a retirement plan than those with some college (58 percent) or those without a college education (39 percent), according to 2025 Gallup data. Young adults between 18 and 29 were less likely to be planning for retirement in general. However, many Gen Zers have aspirations to retire by age 65, 2024 Morning Consult data showed.

    Preparing students for financial stability beyond college also has implications for their families; over half of students told Handshake they plan to provide financial support for older family members during their career.

    Previous research shows that some graduates who take on large amounts of debt to attend college may be less likely to reach adequate retirement wealth. One study found that graduates in 60 percent of majors analyzed—including education, political science, journalism, biology and general business—were unable to reach $290,000 in retirement savings by age 65. For students who held $40,000 in debt, “80 percent of all majors will not reach a sufficient level of financial wealth to have a 50/50 chance of not outliving their money at retirement,” according to the report.

    Future planning: To help students prepare for the future, some colleges and universities offer financial planning support or supply resources on financial education.

    Many institutions partner with iGrad, which provides financial literacy training. iGrad offers courses for students to help them plan for retirement, with content including understanding tax implications, identifying Social Security benefits and navigating common retirement pitfalls. The platform also has a retirement analyzer tool to help students understand the gap between their retirement savings and their goals.

    Kansas State University’s Powercat Financial division offers peer counselors and staff who can answer questions about retirement planning and help students navigate various accounts that might be available to them. The university has also created blog posts that detail how to evaluate employee benefits.

    Two-thirds of undergraduates surveyed by Handshake said they wouldn’t accept a job that didn’t include retirement benefits, and an additional 32 percent said retirement benefits aren’t essential, but they are important.

    Trinity College’s website features a Retirement 101 guide, which helps students understand when they might decide to retire, how to calculate comfortable retirement savings and how investing can factor into retirement income.

    Wellesley College encourages students both to save for their own sake and also to consider how they can give back to the college through a charitable remainder trust or by deeding their residence to the college.

    How does your college or university encourage students to practice wise money habits? Tell us about it.

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  • More Work-Life Balance in Academe Would Help Reduce the Fear of Retirement

    More Work-Life Balance in Academe Would Help Reduce the Fear of Retirement

    To the editor:

    I’m not quite sure why you felt the need to publish the self-indulgent “Teaching as a Sacred Life” by Joe P. Dunn (Nov. 19, 2025).

    It’s great that Joe is inspired by his teaching and is so passionate about it. Of course, most faculty who chose teaching are (or were) so inspired. So what merits the article? I guess that Joe is still teaching at age 80.

    Yes, some people view retirement as a goal because they don’t like their jobs. But many faculty view their profession as a vocation, so why would they retire? One reason is because of diminished effectiveness. Ossified approaches, diminished cognitive capacity and so on are the unhappy, but inevitable, results of aging. The person experiencing these declines is generally not the best at noticing them, as they creep in so slowly that they’re most visible to outsiders or when accurately comparing to yourself from long ago. (A septuagenarian Galileo, when completing Two New Sciences, his seminal 1638 work in mechanics, was disheartened to find that it was hard for him to follow his own notes and thoughts from several decades earlier.)

    Another reason to retire is to give the next generation a chance. Joe talks about the plentiful faculty jobs when he was young. There are many reasons why they’re no longer plentiful, but one of them is that there is no longer a mandatory retirement age. It was legal until 1993 for there to be a mandatory retirement age for tenured faculty (later than the general 1986 ban on mandatory retirement because lawmakers felt there were several valid arguments for a mandatory retirement age for tenured professors).

    Many academics pour so much into their work that they don’t develop a strong identity outside of their job. They end up like Joe, not sure what they would even do in retirement. A broader push for a better work-life balance in higher education could go a long way toward helping people develop their complete selves, and would reduce the fear of retirement among academics. Plus, there are always positions emeriti that allow you to keep your hand in the intellectual world of higher ed without continuing to draw a paycheck that you no longer need and someone else does.

    Speaking of viewing teaching as sacred, clergy retire. Heck, we’ve even had a pope retire. Faculty can figure it out too.

    David Syphers is a physics professor at Eastern Washington University. He is writing in a personal capacity.

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  • Inherited IRAs: Your New Retirement Reality—and How to Handle It (Without Freaking Out)

    Inherited IRAs: Your New Retirement Reality—and How to Handle It (Without Freaking Out)

    By Stuart Canzeri, Founder of Peachtree Financial

    The Gift No One Asks For

    Losing a loved one is hard. Inheriting an IRA can feel like both a blessing and a responsibility – and maybe a buckle-up moment when you realize it comes with tax implications and rules galore. When you’re sorting through paperwork, memories, and new responsibilities, it’s easy to feel lost – or even alone.

    But you’re not. The process may be complicated, but it’s also a way to keep your loved one’s legacy alive. As the iconic Simple Minds song asks, “Don’t you forget about me?” – handling this inheritance thoughtfully is one way to remember.

    What Exactly Is an Inherited IRA?

    An inherited IRA is any Individual Retirement Account passed to a beneficiary after the original owner dies – whether from a parent, spouse, or friend. There are three types: spousal inherited IRAs, non-spouse inherited IRAs, and those inherited through trusts or estates. Each comes with its own timeline and rules, which can feel overwhelming – like trying to recognize a familiar tune under new circumstances.

    So, before you do anything, pause. “Will you recognize me?” echoes the lyric, and in this context, it’s about recognizing your unique relationship to the account, and the person who left it to you.

    Clarify Your Relationship to the Deceased

    If you’re the surviving spouse, you have maximum flexibility. You can roll the IRA into your own account, treat it as your own, and delay Required Minimum Distributions (RMDs) until age 73. That means continued tax‑deferred growth for many years.

    If you’re a non‑spouse heir, under the SECURE Act (2019), most must empty the account within 10 years of the original owner’s death – a rule often referred to as the “10‑Year Rule.” There are no annual withdrawals required – unless the original owner had already taken RMDs – but come year ten, the account must be fully distributed.

    It’s a lot to take in. But just as the song reminds us, “Won’t you come see about me?” – you don’t have to figure this out alone. Seek help if you need it.

    Other exceptions exist for eligible designated beneficiaries – those who qualify as surviving spouses, minor children (under 21), disabled or chronically ill individuals, or someone not more than 10 years younger than the original owner. These beneficiaries can follow a life‑expectancy schedule instead of the 10‑year rule, but only until the death date triggers the switch.

    Ask Yourself: What’s Your Goal?

    An inherited IRA isn’t just unexpected money – it can be a powerful tool if used thoughtfully. Maybe you want to let it grow tax‑deferred for as long as possible, taking small withdrawals yearly. Or maybe you need cash now and don’t mind paying lump‑sum taxes.

     Here, too, the song’s refrain is relevant: “As you walk on by, will you call my name?” – What are you calling this gift in your own life? Security? Relief? A new beginning?

    Understanding your objective – whether it’s growing retirement savings or paying off debt – guides your strategy and timing.

    Tax Bite: What You’ll Owe (And How to Soften It)
    TTraditional IRAs are taxed as ordinary income when withdrawn. Roth IRAs are generally tax‑free – if they meet the 5‑year holding requirement. To manage the tax impact, consider:

    • Spreading distributions across several years to avoid income spikes
    • Timing withdrawals in low-income years
    • Doing partial Roth conversions to pay taxes now at lower rates

    Remember, you’re managing not just numbers, but someone’s legacy – “Don’t you try to pretend…” that it’s only about the math. It’s about using what you’ve received wisely, in a way that honors the person who left it to you.

    Required Minimum Distributions (RMDs): The Basics

    Spouse heirs generally delay RMDs until age 73. Non‑spouse heirs follow the 10‑year rule, with no annual RMDs – unless the original owner had started them already, or an exception applies. Missed deadlines can incur steep IRS penalties – up to 25% of the missed distribution.

    It’s one more reminder that, with inherited IRAs, “slow change may pull us apart” – but smart planning keeps your options – and your loved one’s wishes – together.

    Other Considerations & Tax-Smart Moves

    Inherited IRAs open up strategic opportunities:

    • Qualified Charitable Distributions (QCDs): If you’re age 70½+, direct transfers to charity – up to $108,000 in 2025 – are tax-free and count toward RMDs.
    • Review fees and investments: Some inherited accounts have limited options or high fees – shop around for better custodians and funds.
    • Let Roth IRAs grow: Inherited Roths that meet 5-year holding can continue to grow tax-free for up to 10 years or under the schedule allowed.

    The Importance of a Proactive Plan

    The worst mistake? Doing nothing. Even if you don’t plan to use the funds imminently, the IRS has a timetable – and it isn’t optional. Work with a financial advisor to build a tailored strategy, accounting for taxes, RMDs, and your long-term goals. At Peachtree Financial, we believe inherited IRAs are both a financial asset and a piece of a living legacy.

    An inherited IRA may come with strings attached – but it also comes with opportunity. It can support your family, fund major goals, or fuel retirement planning – if you handle it thoughtfully.

    So don’t freak out. Ask questions. Lean on proven advice.

    And, when you wonder how to honor what you’ve been given, remember that every wise choice answers that timeless call:

    “Don’t you forget about me…”

    Because the way you plan today becomes tomorrow’s legacy.

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  • Retirement Plan Changes and Workplace Protections for Pregnant Workers Included in Fiscal Year 2023 Omnibus Bill – CUPA-HR

    Retirement Plan Changes and Workplace Protections for Pregnant Workers Included in Fiscal Year 2023 Omnibus Bill – CUPA-HR

    by CUPA-HR | January 10, 2023

    On December 29, 2022, President Biden signed the $1.7 trillion Consolidated Appropriations Act of 2023 (omnibus bill) to fund the federal government through fiscal year 2023 (FY 2023). Given the “must-pass” nature of the bill, the omnibus bill also served as a vehicle for policy unrelated to government funding that was unlikely to pass as a standalone bill in Congress. Below outlines some of the highlights that will impact higher education generally and human resources specifically.

    SECURE 2.0

    Notably, the new law includes changes to the access and use of individual retirement funds. Provisions from a package of retirement-related bills, referred to as SECURE 2.0, were ultimately included in the final omnibus package. Specifically, the new law included the following provisions, in addition to others not listed here:

    • Automatic 401(k) and 403(b) plan enrollment: The new law requires employers to automatically enroll employees into newly created 401(k) and 403(b) retirement plans at a rate between 3 to 10 percent of eligible wages. Employees will then have the option to opt out of the enrollment. Employers with 10 or fewer employees and companies in business for less than three years are excluded from this requirement.
    • Expanded eligibility for part-time employees: The law requires employers to provide the option to participate in employer retirement plans for part-time employees who work between 500 and 999 hours for at least two consecutive years (lowered from three consecutive years previously required).
    • Emergency expenses and savings accounts: Employees would be allowed to withdraw up to $1,000 from retirement accounts for qualified emergency expenses without facing early withdrawal penalties if the worker is under 59.5 years old. Additionally, the law allows employers to offer employees an emergency savings account through payroll deductions for amounts up to $2,500.
    • Matching employer contributions for student loan payments: Employers will be allowed to make contributions to their company retirement plan on behalf of employees who are paying student loans and are not contributing to a retirement account as a result.
    • Roth treatment of employer contributions: The new law grants employers the option to amend their retirement plans and allow employees to choose their employer’s matching and non-elective contributions to be made as Roth contributions.
    • Multiple Employer and Pooled Employer Plans for 403(b) plans: The new law allows employers to participate in Multiple Employer Plans (MEPs) and Pooled Employer Plans (PEPs) for 403(b) plans.

    The final law also included several changes to individual activity with respect to their retirement plans, including an increase to the “catch-up” contribution limits of up to $10,000 for older retirement savers and an increase to the age an individual is required to begin taking minimum distributions from their retirement accounts, which is now effective at age 73 and effective at age 75 effective in 2033.

    Workplace Protections for Pregnant Workers

    Additionally, Congress was able to agree on the inclusion of the Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections (PUMP) for Nursing Mothers in the omnibus bill.

    Pregnant Workers Fairness Act

    Passed by the House in May 2021, the PWFA specifically declares that it is an unlawful employment practice for employers with 15 or more employees to do any of the following:

    • fail to make reasonable accommodations to known limitations of such employees unless the accommodation would impose an undue hardship on an entity’s business operation;
    • require a qualified employee affected by such condition to accept an accommodation other than any reasonable accommodation arrived at through an interactive process;
    • deny employment opportunities based on the need of the entity to make such reasonable accommodations to a qualified employee;
    • require such employees to take paid or unpaid leave if another reasonable accommodation can be provided; or
    • take adverse action in terms, conditions or privileges of employment against a qualified employee requesting or using such reasonable accommodations.

    Though the bill enjoyed bipartisan support in both the House and Senate, Republicans opposed bringing the bill to a Senate vote without the inclusion of a religious exemption for employers. Such exemptions were provided in the omnibus bill’s version of the PWFA, ultimately helping lead to its passage.

    PUMP for Nursing Mothers Act

    The PUMP for Nursing Mothers Act passed the House of Representatives in October 2021 with bipartisan support. The bill aims to amend the Fair Labor Standards Act (FLSA) to expand access to breastfeeding accommodations in the workplace for lactating employees and builds upon existing protections in the 2010 Breaktime for Nursing Mothers Act by broadening breastfeeding accommodations and workplace protections. In the new law, the PUMP for Nursing Mothers Act is expanded to include salaried employees exempt from overtime pay requirements under the FLSA as well as other categories of employees currently exempt from such protections, such as teachers, nurses and farmworkers. It also clarifies that break time provided under this bill is considered compensable hours worked so long as the worker is not completely relieved of duty during such breaks, and it ensures remedies for nursing mothers for employer violations of the bill.

    Similar to the PWFA, the PUMP for Nursing Mothers Act did not reach a Senate floor vote, leaving the omnibus bills as one of the last options for passage before the 117th Congress’s term expired.

    Immigration Provisions

    Due to the situation at the southern border, the new law excluded any major immigration overhauls, such as the Equal Access to Green cards for Legal Employment (EAGLE) Act, which would have addressed the immigration visa backlog and made changes to the H-1B visa program. Additionally, protections for the Deferred Action for Childhood Arrivals (DACA) program and Dreamers that have been threatened by recent court decisions were not included in the final bill enacted into law.

    Despite the exclusion of important reforms, the new law reauthorized several expiring immigration programs that are already utilized by institutions of higher education, including additional funds for the E-Verify program.

    Higher Education Funding

    Several provisions were included in the omnibus package that will increase funding for a variety of higher education programs. Notably, the bill includes a $500 increase to the maximum Pell Grant a recipient can receive, raising the total to $7,395 for the 2023-24 award year. Additionally, the bill included funding increases for Federal Work-Study grants, Title III and V programs, Postsecondary Student Success Grants, and the TRIO and GEAR UP programs.

    CUPA-HR will continue to analyze the provisions included in the FY 2023 funding bill and will keep members apprised of any additional noteworthy provisions included in the law.



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  • House Passes Bipartisan Retirement Savings Bill – CUPA-HR

    House Passes Bipartisan Retirement Savings Bill – CUPA-HR

    by CUPA-HR | April 4, 2022

    On March 29, the U.S. House of Representatives passed H.R. 2954, the Securing a Strong Retirement Act of 2021, by an overwhelmingly bipartisan vote of 414-5. The bill includes many provisions to boost individual retirement savings and expand coverage to better access retirement savings programs.

    The bill includes several provisions that would impact employer-sponsored retirement programs. Notably, the bill would make enrollment in newly created 401(k) and 403(b) plans mandatory for eligible employees beginning in 2024. Employers with 10 or fewer employees or those that have been in business for fewer than three years would be exempt from this requirement, and employees would be able to opt out of the program. Additionally, the bill requires employers to allow part-time employees to participate in 401(k) plans if they work at least 500 hours per year after two years working for the employer — a decrease from the previously required three years.

    The bill will also allow employers to make matching contributions to the 401(k), 403(b) or SIMPLE IRA account of employees who are paying off student loans and do not contribute enough to their accounts to receive a full employer match.

    In addition to the provisions related to employer plans, the bill also has provisions for individual workers. The bill allows older workers to make bigger contributions to their retirement accounts than is currently allowed. Specifically, individuals aged 62-64 would be able to contribute an extra $10,000 for 401(k) plans and other programs and $3,000 for SIMPLE plans per year to such accounts beginning in 2024. These “catch-up” contributions would be required to be made after taxes.

    The bill now heads to the Senate where it will need to pass with 60 votes to overcome the filibuster. Given the bipartisan support in the House, the bill could receive similar support from both parties, but it is unclear when and how the Senate will vote.

    CUPA-HR will keep members apprised as this bill moves through the Senate.



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  • Supreme Court Issues Decision Regarding Retirement Plan Fiduciary Duties in Hughes v. Northwestern – CUPA-HR

    Supreme Court Issues Decision Regarding Retirement Plan Fiduciary Duties in Hughes v. Northwestern – CUPA-HR

    by CUPA-HR | March 18, 2022

    On January 24, the Supreme Court issued its unanimous decision in Hughes v. Northwestern University, a case dealing with 403(b) retirement plan fiduciary duties under the Employee Retirement Income Security Act (ERISA). The court criticized the standard applied by the lower courts and sent the case back to the 7th Circuit to reevaluate the plaintiffs’ allegations.

    In the case, the three plaintiffs, all current or former employees of the university, alleged the plan fiduciaries violated the duty of prudence standard under ERISA by “(1) failing to monitor and control recordkeeping fees, resulting in unreasonably high costs to plan participants; (2) offering mutual funds and annuities in the form of ‘retail’ share classes that carried higher fees than those charged for otherwise identical share classes (institutional share class) of the same investments; and (3) offering investment options that were likely to confuse investors.”

    In their decision, which was written by Justice Sotomayor, the court explained that, when determining if a plan fiduciary violated the duty of prudence standard under ERISA, courts must engage in “a context-specific inquiry of the fiduciaries’ continuing duty to monitor investments and to remove imprudent ones” as articulated in Supreme Court precedent, Tibble. The court said the 7th Circuit was wrong in concluding that by providing a choice of investment options, plan fiduciaries insulated themselves from liability claims. It is important to note that the court chose not to weigh in on the plausibility of the plaintiffs’ claims, only on the standard applied by the lower courts.

    CUPA-HR, along with 17 other higher education associations, participated in an amicus brief filed in the case. In the brief, we supported the 7th Circuit’s decision in favor of Northwestern University. We explained, “The question in this case is whether petitioners have pleaded sufficient facts to state a plausible claim for breach of fiduciary duty in administering a retirement plan” under ERISA, but the complaints in this case “overlook important features of the university retirement system and ignore the discretion ERISA affords to plan fiduciaries.” We also clarified that universities and plan fiduciaries “must have the flexibility o administer the plans based upon the particular needs and preferences of the plan participants, without constant second-guessing.”

    The 7th Circuit now has the opportunity to revisit the case. It may choose to dismiss much of the case or review the record again.

    Following the decision, our amicus briefing counsel was quoted saying, “Despite some of the early headlines that have already been written suggesting this case is a really big deal, in fact, I view this as a limited ruling… [T]he Supreme Court did not reach any specific or detailed conclusions that any of the investments offered by the defendants in this case are actually inappropriate, nor did the justices come down and say a fiduciary can never offer retail shares of funds within their institutional retirement plans. Instead, what they said, in a nutshell, is that the 7th Circuit simply did not give enough consideration of the duty-to-monitor precedents set by Tibble.”

    Importantly, the final sentence of the Supreme Court’s decision provided a silver lining; “At times, the circumstances facing an ERISA fiduciary will implicate difficult tradeoffs, and courts must give due regard to the range of reasonable judgments a fiduciary may make based on her experience and expertise.” The court here is clarifying that fiduciaries must be given due deference when making tough decisions.

    That being said, the decision could pave the way for more cases on fiduciary duties to be filed, as plaintiffs’ attorneys may take advantage of the potential opening in order to force settlements.



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