🖤 Donations of all sizes power our public service journalism Give Now

Buzzword: ERISA

Marketplace Staff Feb 22, 2008
HTML EMBED:
COPY

Buzzword: ERISA

Marketplace Staff Feb 22, 2008
HTML EMBED:
COPY

A supreme screw-up brings us this week’s Marketplace Money buzzword: ERISA.

It stands for Employee Retirement Income Security Act. Among other things, this law lets you sue if something in your retirement plan goes awry.

That’s what James LaRue did after he asked his 401(k) managers to move his money into safer investments. They didn’t do it and LaRue wound up losing $150,000.

Whoops!

This week, the Supreme Court unanimously decided that, under ERISA, individual investors can sue their fund managers for such blunders.

Now the managers will have to invest… in a team of lawyers.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.