Renfro v. Unisys Corp, l, No. 10-2447 (3d Cir. 2011)Annotate this Case
Representatives of a putative class of participants in a 401(k) sued under the Employment Retirement Income Security Act, 29 U.S.C. 1001, claiming breach of fiduciary duty. They alleged that defendants inadequately selected investment options to include in the plan. The district court dismissed Fidelity defendants, holding they were not fiduciaries, and dismissed others for failure to state a claim. The Third Circuit affirmed. Fidelity did not a function as a fiduciary with respect to selecting and maintaining the range of investment options; its status as a directed trustee does not subject it to liability for these activities. There was no claim that Fidelity knew the selection of investment options constituted a breach of fiduciary duty and Fidelity is not liable as a non-fiduciary. Plaintiffs did not state a plausible claim. An ERISA defined contribution plan should offer participants meaningful choices about how to invest retirement savings. The plan at issue contains a variety of investment options including company stock, commingled funds, and mutual funds, with 73 distinct investment options. Among the retail mutual funds specifically targeted in the complaint were funds with a variety of risk and fee profiles, including low-risk and low-fee options.