As the Employee Retirement Income Security Act (ERISA) turns 50, the landscape of retirement savings is undergoing significant changes. Recent trends indicate a growing interest among 401(k) and pension plan participants in products that guarantee lifetime income, such as annuities. This shift is increasingly testing the boundaries and adaptability of ERISA, originally enacted on September…
Employers grappling with increased scrutiny over their fiduciary responsibilities towards health plans are advocating for enhanced transparency from insurance providers and other third-party vendors, as the Employee Retirement Income Security Act (ERISA) commemorates its 50th anniversary. Originally enacted on September 2, 1974, ERISA initially covered approximately 6% of individuals in group health plans. Today, self-insured…
As companies strive to attract and retain top talent in a competitive market, expanding family building and reproductive care benefits emerges as a strategic approach. An increasingly significant aspect of this trend involves offering tailored benefits for employees undergoing menopause and perimenopause. The implications of such benefits span across several regulatory frameworks, including the Employee…
In a recent judicial determination, the US Court of Appeals for the Third Circuit affirmed multiple decisions favoring Linde North America, thereby rejecting former in-house lawyer Mark Weller’s claims for an excess benefits boost. Weller contended he was improperly denied approximately $112,000 in benefits following the settlement of a potential whistleblower claim. The court concluded…
Employers managing 401(k) assets forfeited by former employees are facing a series of lawsuits that broaden the scope of disputes concerning excessive fees. These suits fuse two types of claims: one alleging violations of the Employee Retirement Income Security Act (ERISA) and another focusing on the traditionally contentious issue of high plan fees. Legal experts…
Two recent federal court rulings underscore the importance of vigilance when updating beneficiary designation forms for retirement accounts, life insurance, and other financial instruments. Failure to keep these records current can lead to unintended beneficiaries receiving the assets, thereby resulting in protracted legal disputes. A case in point is Proctor & Gamble U.S. Business Services…
The Labor Department faces a challenging task in defending its 2022 rule that facilitates the inclusion of environmental, social, and governance (ESG) factors in 401(k) investment decisions. This comes after the US Supreme Court’s decision in Loper Bright Enterprises v. Raimondo eliminated the Chevron deference, a long-standing principle that allowed agencies considerable leeway to interpret…
The former General Electric Co. (GE) and its spinoffs are facing increasing legal pressure from pension plan participants, shedding light on the potential risks corporations may encounter when opting for pension risk transfers or reorganizations. As large companies like GE navigate financial challenges, they often resort to transferring pension obligations either to annuity providers or…
Thompson Coburn LLP announced that Michael Graham has joined the firm’s Chicago office as an employee benefits partner. Graham brings extensive expertise in employment, fiduciary, regulatory, employee benefits, and ERISA litigation to his new role. Michael Graham advises plan administrators, fiduciaries, and sponsors on compliance and disputes, and has significant experience as first chair in…
The recent Supreme Court decision to overturn Chevron deference has introduced significant uncertainty into the landscape of Employee Retirement Income Security Act (ERISA) legislation. By removing the long-standing precedent that favored federal agencies’ rulemaking interpretations, the Court has shifted the power balance, making courts the final arbiters of ERISA-related disputes. This shift has broad implications…
A Texas federal judge has granted a request by an insurance industry trade association to temporarily block a US Labor Department rule that classifies more retirement advice providers as fiduciaries. The plaintiffs, including the Federation of Americans for Consumer Choice (FACC) and five other insurance industry stakeholders, may likely succeed on the merits of their…
A former attorney at the now-defunct Philadelphia-based law firm Schnader Harrison Segal & Lewis LLP has advanced a proposed class action alleging that the firm mismanaged the retirement benefits of non-equity partners and counsel. According to a recent report, the attorney claimed “interrelated violations” of the Employee Retirement Income Security Act (ERISA) in connection with…
Articles of impeachment have been introduced against Supreme Court Justices Clarence Thomas and Samuel Alito. This action follows through on Representative Alexandria Ocasio-Cortez’s earlier pledge to address allegations of ethical misconduct regarding Supreme Court justices receiving significant financial benefits. Details of the move were reported by The Guardian, highlighting ethics concerns surrounding the justices. Additionally,…
In a recent ruling, U.S. District Judge Trina Thompson has dismissed a case seeking $500 million in unpaid severance for thousands of former Twitter employees who were terminated following Elon Musk’s acquisition of the social media platform in November 2022. The plaintiffs, led by former vice president of total rewards Courtney McMillian, argued that the…
Legal News A $500 million severance case brought by former Twitter employees has been dismissed by U.S. District Judge Trina Thompson. The lawsuit, initiated on behalf of approximately 6,000 workers, accused Elon Musk of violating the Employment Retirement Income Security Act (ERISA) by not adhering to federal benefit plan regulations. Judge Thompson ruled that ERISA…
A legal battle concerning severance pay for former Twitter employees took a decisive turn this week as Elon Musk successfully had a class-action lawsuit dismissed in federal court. The suit, which alleged wrongful denial of severance pay under the Employee Retirement Income Security Act (ERISA), was presided over by US District Judge Trina Thompson in…
A three-judge panel for the U.S. Court of Appeals for the Seventh Circuit denied CITGO Petroleum Corp.’s motion to appeal former employees’ class certification, setting the stage for a potential trial in November. The case, involving allegations that CITGO underpaid pension plans by $31 million, could see significant developments as a hearing to discuss a…
A federal appeals court is currently deliberating on a contentious ERISA rule that has drawn significant attention from both the corporate and political spheres. The rule in question clarifies that fiduciaries tasked with managing retirement funds can consider climate change, diversity, and other environmental, social, and governance (ESG) factors. This has been met with opposition…
Andrew O’Brien has joined Cadwalader, Wickersham & Taft as an executive compensation and employee benefits partner in its New York office. O’Brien brings with him a robust background in executive compensation, employee benefits, and ERISA, according to a statement made by Cadwalader on Monday. O’Brien’s practice focuses on providing advisory services to both public and…
Morgan Lewis Benefit Plan Exits Atty’s ERISA Suit An attorney at Morgan Lewis & Bockius LLP has agreed to withdraw her claims against the firm’s employee benefit plan in a legal action within Pennsylvania federal court. The suit was lodged under the Employee Retirement Income Security Act (ERISA) and alleged that her long-term disability benefits…
WilmerHale has significantly bolstered its employee benefits capabilities by bringing on Amanda Albert as a partner in its tax practice. Announced Tuesday, Albert joins the firm with extensive experience in ERISA, federal income tax, and other related regulations. Albert’s expertise encompasses a wide array of issues in the realms of tax, ERISA, governance, securities, and…
In a strategic move to enhance its corporate department, Wilmer Cutler Pickering Hale and Dorr announced on Monday the addition of Amanda Albert, a partner from K&L Gates. Amanda Albert is set to join the firm’s tax practice, where she will provide counsel on employee benefits and tax matters, particularly in the context of transactions….
The US Labor Department’s newly amended exemption to federal benefits law has triggered significant contemplation among major Wall Street banks over their approach to managing 401(k) plans. The amended standards, effective immediately, impose stricter disclosure and recordkeeping requirements on asset managers who handle workplace retirement funds. These changes include enhanced net-worth and assets-under-management thresholds, and…
In a strategic move to bolster its compensation and benefits practice, Cooley has announced the addition of Michael Bergmann and Scott McCall as partners. Bergmann will be based in Washington, while McCall will operate out of San Diego, according to the firm’s statement on Monday. Bringing a wealth of experience, Bergmann focuses on executive compensation,…
Jason Ertel has joined Paul Hastings as a partner within the firm’s global compensation, benefits, and ERISA practice, the firm announced Thursday. Ertel brings to Paul Hastings an extensive expertise in advising public and private companies, private equity sponsors, management teams, and corporate boards on various issues related to executive compensation, employee benefits, and corporate…