ERISA & Pension Law
ERISA fiduciary duties, pension plan administration, benefit claims, and retirement plan regulation.
Overview
The Employee Retirement Income Security Act of 1974 (ERISA) is the comprehensive federal statute regulating employee benefit plans, including pension plans, health insurance plans, disability plans, and other welfare benefit plans provided by private-sector employers. ERISA establishes minimum standards for plan design, funding, vesting, and fiduciary conduct, and it broadly preempts state laws relating to employee benefit plans.
ERISA's fiduciary provisions (Sections 404 and 405) impose duties of loyalty and prudence on plan fiduciaries — those who exercise discretionary authority over plan management, administration, or assets. Fiduciaries must act solely in the interest of plan participants and beneficiaries, with the care, skill, prudence, and diligence that a prudent person would use. Prohibited transactions rules (Section 406) bar fiduciaries from engaging in certain self-dealing transactions and conflicts of interest.
ERISA's benefit claims and appeals procedure (Section 503) requires plans to provide adequate notice of claim denials and a full and fair review on appeal. If administrative remedies are exhausted, participants may bring suit under Section 502(a) in federal or state court. The standard of judicial review — de novo or abuse of discretion — depends on whether the plan grants discretionary authority to the claims administrator. ERISA's broad preemption provision (Section 514) has been one of the most litigated aspects of the statute, displacing state regulation of employee benefit plans while creating gaps in participant protections.
Key Statutes
| Statute | Citation | Summary |
|---|---|---|
| Employee Retirement Income Security Act (ERISA) | 29 U.S.C. §§ 1001–1461 | Comprehensive federal statute governing private-sector employee benefit plans, establishing fiduciary standards, reporting requirements, and participant protections. |
| Pension Protection Act of 2006 | Pub. L. 109-280, 120 Stat. 780 | Strengthened funding requirements for defined benefit pension plans, expanded automatic enrollment in 401(k) plans, and enhanced disclosure requirements. |
| Retirement Equity Act of 1984 | Pub. L. 98-397, 98 Stat. 1426 | Protects the pension rights of spouses by requiring qualified joint and survivor annuities and allowing for Qualified Domestic Relations Orders (QDROs) in divorce. |
| SECURE Act of 2019 | Pub. L. 116-94, Division O | Expanded access to retirement plans, raised the required minimum distribution age, and allowed long-term part-time workers to participate in 401(k) plans. |
Key Cases
Firestone Tire & Rubber Co. v. Bruch
489 U.S. 101 (1989)
Established that ERISA benefit denial decisions are reviewed de novo unless the plan grants discretionary authority to the administrator, in which case abuse of discretion review applies.
Tibble v. Edison International
575 U.S. 523 (2015)
Held that ERISA fiduciaries have a continuing duty to monitor plan investments and remove imprudent options, even beyond the initial selection.
Hughes v. Northwestern University
595 U.S. 170 (2022)
Held that offering a menu of investment options in a defined contribution plan does not immunize fiduciaries from claims of imprudent management of individual options.
Gobeille v. Liberty Mutual Insurance Co.
577 U.S. 312 (2016)
Held that ERISA preempts state healthcare database reporting laws as applied to ERISA plans, reinforcing the breadth of ERISA preemption.
Key Regulations
DOL ERISA Claims Procedure Regulations
Department of Labor (29 CFR § 2560.503-1)
Regulations establishing minimum requirements for benefit claims procedures, including notice, timing, and review standards.
DOL Fiduciary Rule and Investment Advice Standards
Department of Labor (29 CFR Part 2550)
Regulations defining who is a fiduciary and standards for investment advice provided to retirement plan participants.
PBGC Premium and Insurance Regulations
Pension Benefit Guaranty Corporation (29 CFR Parts 4000–4907)
Regulations governing PBGC insurance premiums, plan termination procedures, and benefit guarantees for defined benefit pension plans.
Common Issues
- Fiduciary breach claims (excessive fees, imprudent investments)
- Benefit claim denials and administrative appeals
- ERISA preemption of state law claims
- Prohibited transaction and self-dealing violations
- QDRO preparation and enforcement in divorce
- 401(k) plan fee and revenue-sharing disclosure
- Multi-employer pension plan withdrawal liability
- COBRA and continuation coverage compliance
State Variations
ERISA's broad preemption provision generally displaces state laws that 'relate to' employee benefit plans, creating a largely uniform federal framework. However, ERISA preserves state regulation of insurance, banking, and securities (the savings clause). States cannot impose additional requirements on ERISA-regulated plans, but they can regulate the insurance products purchased by those plans. State-mandated health benefits apply to fully insured plans but not to self-insured ERISA plans. State and local government employee pension plans are exempt from ERISA and governed entirely by state law, resulting in significant variation in public pension funding requirements, benefit structures, and governance standards.
Resources
Department of Labor Employee Benefits Security Administration (EBSA)
Federal agency responsible for administering and enforcing ERISA's fiduciary, reporting, and disclosure provisions.
Pension Benefit Guaranty Corporation (PBGC)
Federal corporation that insures defined benefit pension plans and pays benefits when underfunded plans terminate.