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U.S. Bank Should Face Liability for Pension Losses, Feds Say

Sept. 19, 2019, 2:34 PM

U.S. Bank NA should face liability for overly risky investing that caused $748 million in pension plan losses despite its later infusion of cash to fully fund the plan, the federal government told the U.S. Supreme Court.

A participant in a defined-benefit plan can sue an administrator for breach of duty even if the plan is fully funded, the government said in a friend of the court brief filed Sept. 18.

The U.S. Court of Appeals for the Eighth Circuit erred when it found that the Employee Retirement Income Security Act doesn’t allow the claims, the brief argued.

The participants ...

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