Pension and ERISA benefits are one of employers’ most expensive components of labor and capital costs. Former employees of the Union Square Credit Union sued our client claiming that they had been promised retirement and ERISA plan “benefits for life.” Their suit alleged our client violated ERISA and defrauded them and sought potentially hundreds of thousands of dollars in damages.
Based on Collins’ Motion to Dismiss, a Dallas Federal Judge dismissed the entire lawsuit with prejudice. The Court held that the Plaintiffs failed to state a viable claim that the Credit Union’s retiree benefits policy was subject to ERISA.
This decision should help employers delineate between benefit plans and policies that are subject to ERISA laws (which require mandatory reporting and disclosure obligations as well as fines for not doing so) and benefit plans and policies that are not subject to ERISA.
Should you have questions about whether your company’s policies or procedures have unwittingly created an ERISA covered plan, please contact Bryan directly at (214) 239-2762.