Case: Pension Plans/Class Actions (9th Cir.)

A proposed class action accusing Northrop Grumman Corp. and Alight Solutions of misleading Northrop employees about the size of their pensions can move forward under state law but not ERISA fiduciary rules, the U.S. Court of Appeals for the Ninth Circuit ruled. A third-party benefits administrator that calculates a plan participant’s benefits under a pre-set formula isn’t performing a fiduciary function under ERISA, the court said. Because Alight wasn’t acting as an ERISA fiduciary when it gave the Northrop workers “grossly overestimated” benefit calculations, neither Alight nor Northrop can be liable under the statute for the mistake, the court said. ...