Practical Insights - Courts Defer to Fiduciary's Decision if ERISA Plan Contains Explicit Language

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Employees participating in ERISA covered benefit plans have the right to dispute the interpretation of a plan provision or an adverse benefits decision made by a plan fiduciary, which can include the plan administrator. If not resolved on appeal at the plan level, these disputes often result in a lawsuit against the fiduciary. Courts may or may not defer to the fiduciary’s determination.

How does a plan ensure that its fiduciary’s benefit interpretations and determinations will be given deferential (more favorable) review by the Court?

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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