Benefits & Executive Compensation News

USC Can’t Force Retirement-Plan Fee Claims Into Arbitration

March 24, 2017, 3:24 PM

The University of Southern California can’t make retirement plan participants take their claims about plan mismanagement to arbitration (Munro v. Univ. of S. Cal., C.D. Cal., No. 2:16-cv-06191, 3/23/17).

The participants’ ability to bring claims of fiduciary breach under the Employee Retirement Income Security Act is unaffected by their arbitration agreements with USC because those claims are, by their nature, plan claims and the plan didn’t consent to arbitrate, Judge Virginia A. Phillips of the U.S. District Court for the Central District of California held March 23.

Phillips’ decision is an early win for St. Louis-based Schlichter Bogard...

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