U.S. Supreme Court Rules On Remedies For Deficient Plan Communications

The U.S. Supreme Court does not often issue decisions interpreting the Employee Retirement Income Security Act (ERISA), so when the Justices speak, the issues are significant. The Court recently issued a long-awaited decision on the remedies available to participants whose plan communications fail to inform them of significant restrictions on benefits.

The full implications of CIGNA CORP. v. Amara will not be clear until it has been interpreted in subsequent decisions. However, the fact that both plan sponsors and plaintiffs' counsel have called the decision a victory suggests that while CIGNA may have won the immediate battle, careless fiduciaries may have lost the war. A new menu of remedies for misrepresentations to participants appears to be available without having to show in all cases that participants relied on those communications.