ERISA & Employee Benefits

Jordan Mamorsky

Eighth Circuit Delivers Guidance on Whether Rate Setting Amounts to Fiduciary Conduct

Courts have long struggled to set the boundaries at which point ERISA plan service providers exert sufficient control and discretion over plan assets to make them fiduciaries under ERISA 3(21). The significance of being an ERISA fiduciary is self-evident in the litigation context: if an entity is not an ERISA fiduciary, then it cannot be liable for a breach of ERISA's fiduciary duties and ...

ERISA Case in the District Court for the Southern District of New York Highlights Plan Sponsor QDRO Responsibilities

A sometimes forgotten issue in a divorce, separation, or other domestic relations proceeding is the division of retirement plan benefits between former partners and/or husband and wife. While the general rule is that ERISA and the Internal Revenue Code do not permit a participant to assign or alienate the participant's interest in a retirement plan to another person, a developed exception to the ...

Two Opinions Demonstrate Importance of Prudent Administrative Procedures and Substantive Decisions in Responding to ERISA Benefit Claims

One of the most common and important tasks for ERISA plan fiduciaries is how to appropriately respond to plan participant claims for benefits. When the decision is made to deny benefits to claimants, the importance of having in place prudent protocols and procedures is magnified, and closely following those procedures on an administrative and substantive basis could make a key difference, ...

Petition For Rehearing and Supporting Amicus Briefs Filed In Schwab ERISA Arbitration Case

In August of this year, a Ninth Circuit three-judge panel ruled in Dorman v. The Charles Schwab Corporation, DC No. 4:17-cv-00285-CW, 2019 WL 3939644 (9th Cir. August 20, 2019) that a plan document's arbitration provision could bar class action allegations of breach of fiduciary duty brought on behalf of the plan under ERISA §502(a)(2). ERISA §502(a)(2) authorizes the Secretary of Labor, ...

Supreme Court Amicus Brief Shows How High the Stakes Really are for the Future of ERISA's "Actual Knowledge" Requirement

The battle over what constitutes "actual knowledge" of an ERISA fiduciary breach or violation ratcheted up a notch with the filing of an amicus brief in Sulyma v. Intel Corporation Investment Policy Committee, on behalf of several of the largest trade associations in the retirement investment advisory and employee benefits industry. The Intel amicus brief, filed on behalf of large trade ...

Ninth Circuit Changes its Position on the Enforceability of Arbitration of Breach of Fiduciary Duty Claims Under ERISA §502(a)(2)

The Ninth Circuit, in Dorman v. The Charles Schwab Corporation, modified its position on the enforceability of arbitration agreements to ERISA claims of breach of fiduciary duty on behalf of the plan under ERISA Section 502(a)(2). The Court found an arbitration provision in the plan document was enforceable against the plaintiff. The Dorman decision may encourage plan sponsors to amend plan ...

Defining the Limits of Broad, Complete ERISA Preemption in Health Care Excessive Fee Cases

Over several decades, courts have developed a rich history of broad, complete ERISA preemption of any and all claims in state courts as they relate to ERISA plans and participant rights to receive benefits and coverage pursuant to ERISA. Complete ERISA preemption differs from express, conflict ERISA preemption because it allows removal of a case sitting in state court to federal court. It is ...