As of press time, the
U.S. Supreme Court was set to rule on a case that could redefine the claims and
remedies allowed under the federal Employee Retirement Income Security Act
(ERISA). The lawsuit arose after a 401(k) plan participant asked the plan
administrator, which was his employer, to change his elections. The participant
claimed he would have gained $150,000, but did not because his employer didn’t
make the changes. He filed a lawsuit for breach of fiduciary duty to recover
the $150,000, but the employer argued that ERISA did not provide for the
individual monetary award he sought. A trial court ruled that the plan
participant was not entitled to relief under ERISA, and the Fourth Circuit
Court of Appeals agreed. The Supreme Court’s ruling could have far-reaching
implications because it could clarify whether the section of ERISA covering “equitable
relief”—Section 502—should entitle aggrieved parties to seek monetary damages.
We’ll keep you posted.
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