The Rise the Duty of Prudence and Demise of the Large-Menu Defense: An Update on Recent ERISA Litigation and Divane v. Northwestern

Abstract

This paper is broken into three separate sections: Section I provides an overview of employee-benefit retirement plans and the statute which sets the guidelines for the regulation of such plans; Section II provides a history of the fall of the “large-menu defense” and the rise of the duty of prudence; Section III explains the recent ERISA litigation involving Northwestern University and argues that the court erred in the dismissal of the case because it misapplied the large-menu defense and failed to recognize the recent case law strengthening the duty of prudence.