Opinion summary
Etalia.ai summary of the majority opinion
The Supreme Court case addressed whether a noncontributory, compulsory pension plan constituted a 'security' under the Securities Act of 1933 and the Securities Exchange Act of 1934. The plaintiff, Daniel, argued that his employer's pension plan should be considered an investment contract and thus subject to federal securities laws. The court held that such plans are not securities because they do not involve an investment in a common enterprise with expectations of profits derived from others’ efforts. Instead, these plans are more akin to employment benefits provided by employers as part of compensation packages rather than investments made by employees expecting returns on their contributions.
Opinion written by Justice Powell
Decided 16 Jan 1979 · Official report