Can You Sue Your 401(k)?

[RamboLiberal]

Source: CBS News

James LaRue says he lost $150,000 when his instructions to his employer on where to invest money in his retirement plan were ignored.

Now the Supreme Court will decide whether a federal pension-protection law gives LaRue the right to sue to recover his losses. Arguments in the case, which has far-reaching consequences, were scheduled for Monday.

-----

LaRue says that in 2000 and 2001 he requested changes in his investment allocations in mutual funds that were available to participants in his company's 401(k) plan. He says the requests were not honored.

"I wanted to sell stocks and move to cash because I thought the market would head down. I was right," LaRue said in a telephone interview. "I didn't find out that the plan had not executed my transactions until 10 months later. They had a substandard reporting system. I left the firm. I asked them again to make the change, and they still didn't do it. I don't know why."

The Bush administration, siding with LaRue, says an appeals court ruling against him would leave participants in "the most common form of pension plan who have been injured by a breach of fiduciary duty without a meaningful remedy from any court."

Read more: http://www.cbsnews.com/stories/2007/11/25/business/main3537894.shtml

---

Whoa, one of the few times I agree with the Bush Administration.