High Court To Consider Retirement Planning
Sunday, November 25th 2007, 2:23 pm
By: News On 6
SUPREME COURT (AP) -- The Supreme Court is set to hear arguments on Monday in a case involving workers who make suggestions on how they want their retirement-plan money invested.
The case centers on James LaRue. He says he lost $150,000 when his employer ignored his instructions on where to invest his retirement-plan funds. The High Court will decide whether a federal pension-protection law gives LaRue the right to sue to recover his losses.
The case could have far-reaching effects. Two trillion dollars are invested in 401(k) plans, which are different from traditional pension plans. Participants in 401(k) plans do not know how much money they will receive in retirement. The income depends on how
well investments have performed.