Jenner & Block

Client Alert: Second Circuit Applies Rebuttable Presumption that Fiduciaries Were Prudent in Offering Employer Stock for One Retirement Plan But Denies the Presumption to Another Plan

In this advisory, Jenner & Block Partners Amanda S. Amert and Douglas A. Sondgeroth and Associate Michael W. Ross summarize the Taveras v. UBS AG case, in which the Second Circuit held that ERISA plan fiduciaries are not entitled to a presumption that they acted prudently by offering plan participants the opportunity to invest in employer stock where the plan’s terms merely permit – but do not in the Court’s view require or "strongly encourage" – employer stock as a plan investment option. The authors identify important ramifications of the Court’s decision, which is of particular interest to employers offering company stock to retirement plan participants.