Tibble v. Edison International

Under the Employee Retirement Income Security Act’s six-year statute of limitations, district court correctly measured the timeliness of claims alleging imprudence in plan design from when the decision to include those investments in the plan was initially made. To extent that beneficiaries’ claims hinged on infirmities in the selection process for investments, mere notification that retail funds were in the plan menu fell short of providing "actual knowledge of the breach or violation," so the six-year statute, not the three-year limitation of Sec. 413(2), applied. Department of Labor interpretation limiting scope of ERISA Sec. 404(c)--a safe harbor that can apply to a pension plan that "provides for individual accounts and permits a participant or beneficiary to exercise control over the assets in his account"--as applying only when the breach or loss is the "direct and necessary result" of the action by the beneficiary is entitled to judicial deference. Revenue sharing between mutual funds and administrative service provider did not violate ERISA where such sharing was permitted under a reasonable interpretation of plan.
     Tibble v. Edison International - filed March 21, 2013
     Cite as 10-56406

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