In Central States, Southeast & Southwest Areas Pension Fund v. Sheets Enterprise, No. 24 cv 2277 (N.D. Ill.), a district court held that an employer could not avoid being held liable for withdrawal liability simply because it had been dissolved under state law. The decision is instructive because it shows the limits that state
Third Circuit Affirms Finding that Withdrawal Liability Assessment Was Untimely
When an employer withdraws from a multiemployer pension plan, the plan’s trustees must notify the employer of the amount of its withdrawal liability and demand payment. Employers assessed with withdrawal liability often argue that the assessment is untimely because the trustees did not send it to the employer “as soon as practicable,” as is required
Sixth Circuit Again Invalidates ERISA Plan Arbitration Clause
The Sixth Circuit recently reversed a district court’s dismissal, and order requiring arbitration of, a proposed class action alleging fiduciary breaches in connection with the Kellogg Company 401(k) plan. Fleming v. Kellogg Co., 2024 WL 4534677 (6th Cir. Oct. 21, 2024). In so ruling, the Sixth Circuit added to the list of recent decisions
Massachusetts District Court Permits 403(b) Plan Fiduciary Breach Claims to Proceed
A federal district court in Massachusetts recently denied a motion to dismiss a complaint filed by plan participants in the Cape Cod Healthcare, Inc. 403(b) plan, which alleged that the plan’s fiduciaries breached their ERISA duty of prudence by permitting the plan to pay excessive recordkeeping fees and remain invested in overpriced, underperforming investment options.