Tuesday, October 20, 2009
Finally! I am so happy to hear the head of the Employee Benefit Security Administration (EBSA), Phyllis Borzi, talk about the need for need for ERISA reform in the area of remedies as part of the push for health care reform.
Plan sponsors and employee benefit attorneys too often jump to the defense of the Employee Retirement Income Security Act for all the wrong reasons, Phyllis Borzi, assistant secretary of labor of the Employee Benefits Security Administration, said Oct. 19 at a health and welfare plans conference sponsored by the American Bar Association. . . . .Borzi said it would it a tragedy if Congress passed health care reform legislation without addressing remedies available to plan participants under ERISA.
I certainly agree with Sec. Borzi that the current state of ERISA remedies is a tragedy and that health care reform efforts need to consider addressing this remedial issue. I also agree that many employers and management-side attorneys have a knee-jerk reaction to defend that system because of favorable treatment under ERISA's remedial and preemption provisions.
It is time for Congress to finally provide a meaningful remedy for ERISA violations.