Cornell Workers Score SCOTUS Revival of Retirement Plan Suit (1)

Cornell University employees will get another chance to challenge their retirement plan’s service provider arrangement after the US Supreme Court took a worker-friendly view of ERISA’s prohibited transaction rules.

The justices’ unanimous opinion makes it easier for workers to successfully argue that retirement plan service provider arrangements violate the Employee Retirement Income Security Act’s prohibited transaction rules. Attorneys had predicted that a victory for the workers could mean employers would face an increase in litigation and administrative costs as well as hefty settlements.

Fiduciaries defending their retirement plans in court must plead and prove that they qualify for a statutory ...