Fiduciary Responsibility Causing Counties to Re-Think Deferred Comp Programs
A recent U.S. Supreme Court decision has public and private employers taking a hard look at employee benefit programs they offer. You may have seen the article discussing this issue in the recent edition of Tennessee County News (link here). In the case of Tibble v. Edison, the Court found that employers have a “continuing duty” to monitor investment options and deferred compensation benefits that are offered to employees to ensure the offerings remain competitive. This is in addition to the employer’s responsibility to exercise good judgment when selecting investment plans at the outset. Because of this risk of liability, counties are encouraged to look at the investment options provided through the State of Tennessee. Counties may join these deferred compensation plans, both 401(k) and 457(b), which are administered by the Treasurer’s Office. That office assumes the role of plan fiduciary, relieving the county of administrative burdens and potential employer liability like that described in the Edison case. For more information, go to www.treasury.state.tn.us/dc
