ERISA (Employee Retirement Income Security Act) (29 U.S.C. ch. 18) (29 CFR Chapter XXV) (Pension Benefit Guaranty Corporation)

• The Employee Retirement Income Security Act ("ERISA") applies to any employer involved in interstate commerce that has a welfare benefit plan or a pension plan.

• "Welfare benefit plan" is defined to mean any plan, fund or program for the purpose of providing through the purchase of insurance or otherwise:
  
  • medical, surgical, or hospital care or benefits;
  • benefits in the event of sickness, accident, disability or death;
  • unemployment benefits;
  • vacation benefits;
  • apprenticeship or other training programs;
  • day care centers;
  • scholarship funds; and
  • prepaid legal services. (29 U.S.C. s. 1002)
    
    
• Participating employees and covered beneficiaries are entitled to certain information with regard to welfare plans as well as pension plans. Participants and beneficiaries receiving benefits at certain intervals:
  
  • are entitled to a summary plan description:
  • are entitled to a summary of any changes;
  • are entitled to summary of the annual report;
  • are entitled to a statement of the vested benefits; and
  • are entitled to a statement of total benefits accrued and the pension benefits vested. (29 U.S.C. ss. 1022-1025)
  
  
• ERISA prohibits any person from discriminating against a participant or beneficiary for exercising any right under the provisions of an employee benefit plan or employee retirement plan or terminating anyone in order to deny them benefits under such plans. (29 U.S.C. s. 1140)
  
  
• Such civil actions must be brought in the U.S. District Court where the plan is administered, where the breach took place, or where the defendant resides or may be found. (29 U.S.C. s. 1132(e))
  
  
• No such civil action may be commenced after the earlier of (1) six years after the last action which constituted a breach or violation or (2) three years after the earliest date on which the plaintiff had actual knowledge of the breach or violation, except that in the case of fraud or concealment, such action may be commenced not later than six years after the date of discovery or such breach or violation. (29 U.S.C. s. 1113)
  
  
• In order to state a claim for a transaction prohibited under s. 1106 of ERISA, a plaintiff need only plausibly allege the elements contained in that provision itself, without addressing potential s. 1108 exemptions. Section 1108 sets out affirmative defenses, which must be pleaded and proven by defendant. Cunningham v. Cornell University, 604 U.S. __ , 145 S.Ct. 1020 (2025)


• On June 16, 2025, the First Circuit Court of Appeals held that an employee's State lawsuit regarding her employer's failure to pay her severance benefits under its Severance Policy was preempted by ERISA under 29 U.S.C. s. 1144(a) as the court must refer to the Severance Policy to determine both liability and damages and her claims conflicted with the remedial scheme established by 29 U.S.C. s. 1132(a). Orabona v. Santander Bank, N.A., 141 F.4th 1 (1st Cir. 2025)




 

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