Supreme Court Signals Support for Intel in 401(k) Case as Benchmark Standard Takes Center Stage
Updated
Updated · CNBC · Oct 10
Supreme Court Signals Support for Intel in 401(k) Case as Benchmark Standard Takes Center Stage
2 articles · Updated · CNBC · Oct 10
Summary
Several justices at Tuesday’s arguments appeared inclined to back Intel, pressing employees’ counsel on whether an underperformance claim can proceed without a “meaningful benchmark.”
The dispute stems from a 2019 suit by a former Intel employee alleging the company’s retirement plan breached fiduciary duties through weak returns, while lower courts said underperformance alone is insufficient without a valid comparison.
Justices including Clarence Thomas, Elena Kagan, Samuel Alito and Neil Gorsuch repeatedly used an “apples and oranges” analogy, signaling skepticism toward comparing funds with different risk and return objectives.
Employers are watching because a ruling for Intel could curb litigation risk and bolster Labor Department efforts to ease private-market access in 401(k)s, though large companies may still move slowly.
That caution reflects years of shifting policy—from a 2020 Trump-era opening, to a 2021 Biden-era pullback, to a 2025 executive order and a March proposal encouraging alternative investments.