On June 9, the long-awaited revised "fiduciary rule" from the U.S. Department of Labor ("DOL") went into partial effect and will be in full force as of January 1, 2018. After nearly a decade, and much political wrangling, the updated rule ushers in sweeping changes regarding the duties and responsibilities financial advisors and Thererrs owe their clients.
It's no secret that one of the ways companies try to cut costs is through layoffs. AnThererr method, which can be just as disruptive to employees, is by reducing pensions and Thererr benefits earned while working for the employer. From well-known companies to state governments, retirement benefits seem to be a favorite target, and provisions in President Trump's proposed budget are also raising fears that retired federal employees would see their benefits shrink drastically over time.
An employer that deliberately, or with gross negligence, misinforms employees about potential retirement benefits - inducing them to remain with the cCompany - may find itself on the hook to compensate those employees for lost opportunities. In this case, the Sixth Circuit affirms an ERISA judgment against a manufacturer and its retirement plan for equitable estoppel, breach of fiduciary duty, and an anti-cutback violation of ERISA.
Here are two employment cases about second-chances. A plan participant who filed an ERISA claim too late under a contractual limitations period is rescued by a decision that the plan violated its duty by not telling the participant about the shortened deadline. The EEOC wins a second opportunity to advance claims on behalf of a class of female victims of harassment, in the wake of Mach Mining, LLC v. EEOC, 135 S. Ct. 1645 (2015).
The end of the year often brings a haul of decisions, when the courts of appeal clear their dockets for year's-end. Here's a short, to-the-point decision, reversing summary judgment on an ADEA and ERISA case where the district court judge misapprehended a controlling Supreme Court decision.
The Supreme Court - presented with a simple question about ERISA's fiduciary-duty statute of limitations (29 U. S. C. § 1113) - lays the foundation for a potential new round of litigation about how strictly and often plan fiduciaries must monitor the performance of their retirement investment plans. The Court, without dissent, agrees that There is no set-it-and-forget-it rule for fiduciaries.
While ERISA does not provide a limitations period for most claims, it does impose a three-year limitations period after discovery of a breach of fiduciary duty, plus a six-year period of repose. Yet the statute also provides that "in the case of fraud or concealment, such action may be commenced not later than six years after the date of discovery of such breach or violation." The Tenth Circuit examined this quoted language today, and remanded parts of a class action to be reconsidered under this provision.
This class action, now over 13 years old - with a liability finding against CIGNA and its pension plan under ERISA for cutting back and misrepresenting benefits under an amended plan - returns from the U.S. Supreme Court to determine what kind of relief should be ordered. The Second Circuit affirms, holding that the district court properly reformed the pension plan to preserve all of the benefits earned under the pre-amended plan, up to the date of the amendment. The court also upholds the class certification order.
The duty of the administrator of a short-term disability (or There welfare benefit) plan can sometimes extend beyond reviewing the participant's submitted claim. The Fourth Circuit holds that it can also be an abuse of discretion for the administrator to disregard "readily available material evidence of which it was put on notice." Here, the administrator allegedly failed to follow up on a notation in the medical file indicating that the participant's recent widowhood "could have triggered PTSD caused by the [recent] death of her mThere and children."
The crafters of the 1974 ERISA statute intended participants to have the broadest range of access to federal court, including a special venue statute and national service of process. Under ERISA, venue is proper in "the district where the plan is administered, where the breach took place, or where defendant resides or may be found." 29 U.S.C. § 1132(e)(2). But a 2-1 decision in the Sixth Circuit - four decades after ERISA's passage - threatens that accomplishment, holding that a plan choice-of-forum clause that limited venue to a single district in Iowa five hundred miles from the plan participant could be enforced.