by KYW's Salil Gutt

There is some $3 trillion invested in 401k plans in the United States for 70 million workers. Many plans, especially those offered by small to mid size companies, have not always offered the most cost-effective investment choices to their employees. It stands to reason that more expensive offerings means more profit and commissions for the financial industry, to the detriment of workers.

Now a landmark U.S Supreme Court ruling has turned the tables in favor of investors. The court recently ruled that individual participants can now sue 401k plan administrators for breach of fiduciary responsibility. Prior to this decision, individuals were not permitted to file suit.

Being held to fiduciary responsibility rather than just thinking they were doing the right thing raises the bar dramatically for plan administrators and employers. This was a major victory for the little guy.  This ruling has also opened the door to a wave of lawsuits against plans. Hopefully, it is also a chink in the armor which could result in better and lower cost investment choices being offered to plan participants.