Benefits & Executive Comp

Retirement Plan Provider Accused of $75,000 Error Must Face Suit

Jan. 14, 2021, 3:28 PM

An Illinois credit union can move forward with professional negligence and breach of contract claims against the retirement plan service provider whose mistakes allegedly cost the credit union more than $75,000 to correct, a federal judge ruled.

American United Life Insurance Co., which provided administrative and record-keeping services for GCS Credit Union’s retirement plan, argued the credit union’s lawsuit was preempted by the federal Employee Retirement Income Security Act, because resolution of the case would require interpreting the terms of an ERISA-covered plan.

Chief Judge Nancy J. Rosenstengel of the U.S. District Court for the Southern District of Illinois disagreed...

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