Current and former employees of ABB, Inc. who participated in two ABB retirement plans governed by ERISA sued, alleging breach of fiduciary duties of the plan’s administrators. The trial court entered judgment against ABB and Fidelity for breaching their fiduciary duties, and they appealed.

1. What was the legal issue in this case? What did the appeals court decide? 

2. In what ways did the plaintiffs contend that the employer and investment firm breached their fiduciary duties to plan participants?

3. Why does the appeals court rule for the plaintiffs regarding the record-keeping fees paid to Fidelity? Why does the appeals court side with the defendants regarding the re- design of the plan?

4. Department of Labor regulations state that “[T}he assets of the plan include amounts…that a participant or beneficiary pays to an employer, or amounts that a participant has withheld from his wages by an employer, for contribution or repayment of a participant loan to the plan, as of the earliest date on which such contributions or repayments can reasonably be segregated from the employer’s general assets.” Should the district court have relied on this regulation to conclude that the “float” was a plan asset improperly used by Fidelity?

5. What are some practical implications of this decision?