It’s great to see that the Sixth Circuit has aligned with other Federal appeals courts in recognizing that arbitration provisions are invalid when they attempt to waive your rights and remedies under ERISA.
In the recent case Parker v. Tenneco, participants argued that plan fiduciaries failed to use a careful process when selecting, monitoring, and replacing investment options in the plan, leading to excessive fees for managed account services, record-keeping, and administration. The fiduciaries tried to enforce individual arbitration agreements, claiming these provisions required participants to settle disputes individually instead of filing class actions or suing on behalf of the plan. Fortunately, the trial court ruled in favor of the participants, stating that such arbitration clauses unlawfully limited participants' rights under ERISA.
While no one wants to see frivolous lawsuits (looking at you, cases against some target date funds), it’s important that participants retain the right to pursue class action claims, especially when it comes to excessive fees. Don’t give up that right!
Comentários