In a unanimous decision in the Intel Corp. Investment Policy Committee v. Sulyma case, the Supreme Court refused to limit the timeframe in which participants could bring a lawsuit challenging the investment decisions made by plan fiduciaries. While ERISA provides only a three-year statute of limitations when participants have “actual knowledge” of an alleged breach or violation, the Court opined that this shorter period isn’t applicable when the participant in question didn’t read or didn’t recall having read all the relevant information about the investments provided by the plan. In those situations, the Court ruled that a longer six-year statute of limitations applies. This decision opens employers and retirement plan fiduciaries up to an increased risk of litigation while increasing the standard for evaluating breach claims and class action certifications.
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