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Today’s notable decision is the D.C. Circuit decision in Lewis, et al. v. Pension Benefit Guaranty Corporation, No. 17-5068, __F.3d__, 2018 WL 4000484 (D.C. Cir. Aug. 21, 2018).  

The gist is that Delta and the PBGC agreed to terminate the Delta Pilots Retirement Plan (“the Plan”) because the Plan had insufficient assets to support the retirement benefits promised to the pilots.  The PBGC became the statutory trustee to collect the Plan’s remaining assets and make the promised payments according to a list of statutory priorities.  Unfortunately, it took six years for the Corporation to finish making final benefit determinations.  The pilots claim that the PBGC breached its fiduciary duties in a number of ways which enabled it to control Plan assets for a longer period and collect massive investment returns. 
Continue Reading Pension Plan Participants Cannot Seek Disgorgement of Post-Termination Investment Gains Resulting from PBGC’s Alleged Fiduciary Breach

Good morning, ERISA Watchers!  Hope you all survived the Mercury retrograde, which I’m convinced brought about the last two terrible notable decisions out of the Fourth Circuit.  This week I want to take a moment to highlight two decisions from the Sixth Circuit Court of Appeals.  Unfortunately, these opinions are not great for plan participants either, except for a little nugget from Springer v. Cleveland Clinic Employee Health Plan Total Care, No. 17-4181, __F.3d__, 2018 WL 3849376 (6th Cir. Aug. 14, 2018).  

In Springer, the plan administrator denied the plan participant’s claim for coverage for air ambulance transportation because he did not seek preauthorization.  On the upside, the Sixth Circuit affirmed the district court’s determination that the plaintiff has standing to bring his claim despite the failure to allege a financial loss.  The court noted that “[e]very circuit court to consider this issue agrees that a plaintiff in Springer’s shoes does not need to suffer financial loss.
Continue Reading Sixth Circuit Joins Sister Circuits: Denial of Plan Benefits Confers Standing Even If Not Billed Directly for Medical Services

This week’s notable decision is another claimant-unfriendly opinion out of the Fourth Circuit neck of the woods – Dawson-Murdock v. National Counseling Group, Inc., et al., No. 3:18-CV-58, 2018 WL 3744020 (E.D. Va. Aug. 7, 2018). 

In this case, Plaintiff Dawson-Murdock deceased husband, Wayne Murdock, worked full-time for Defendant National Counseling Group, Inc. (“NCG”).  As a full-time employee, he was covered by a group life insurance policy funded by Unum Life Insurance Company of America.  On March 21, 2016, Wayne switched to part-time work.  Though it’s not clear from the opinion as to why Wayne reduced his work hours, the fact that he died six months later suggests it was due to a medical condition.  After he started part-time work, Wayne continued to pay premiums for his life insurance coverage. 
Continue Reading Court Rules No Remedy Available for Aggrieved Life Insurance Beneficiary