Many plan sponsors, particularly those managing large retirement plans, are reacting to increased litigation risk by reducing their investment menu options. As a result, employees are prevented from investing within the plan in certain asset classes, which have the potential to grow participants’ assets significantly. After analyzing the 401(k) savings of a group of 200,000 public employees who did not have access to a pension, on average, having access to these higher-volatility investment options increased participants’ retirement wealth by roughly 3%. He noted that the research followed a 10-year investment horizon period. Financial Industry Litigation, counsel Ben Reilly said the fact that participants’ account balances grew by 3% over a 10-year investment horizon is significant. “I find that very compelling from a litigation standpoint, because the way that courts rule, it’s always a six-year horizon for these cases." More on Plansponsor.