Supremes Take ERISA Fiduciary Case

The Supreme Court has accepted cert in Beck v. PACE International Union, to decide the issue of whether a pension plan sponsor’s decision to terminate a plan by purchasing an annuity, rather than to merge the pension plan with another, is a plan sponsor decision not subject to ERISA’s fiduciary obligations.  As Ross Runkel points out, the case is expected to provide guidance on whether ERISA fiduciary duties apply when a plan administrator decides to terminate a plan, and whether the administrator has fiduciary duties as to the implementation of the termination. 

rb