Might litigation under the Employee Retirement Income Security Act of 1974 (ERISA) finally see reform in 2026? U.S. Rep. Randy Fine certainly hopes so.
Last month, the Florida Republican introduced the ERISA Litigation Reform Act, which would ensure that retirement plan fiduciaries, employers, and participants operate under a more predictable, fair, and efficient legal framework than they do now, according to Fine’s office, which added that the bill also clarifies the burden of proof in certain fiduciary-related claims and establishes a targeted stay of discovery during the early stages of litigation.
“American workers deserve retirement plans that are well-run and well-protected, not drained by abusive litigation tactics,” Fine said in statement. “This bill strengthens fiduciary accountability while preventing meritless lawsuits from driving up plan costs and reducing workers’ retirement security.”
The bill has been referred to the House Committee on Education and Workforce, which has jurisdiction over ERISA — and where the proposed bill seems to have support.
“Frivolous class action lawsuits against ERISA plan sponsors and fiduciaries prey on a voluntary system that exists to provide retirement savings,” committee chair Tim Walberg (R-Mich.) said in a statement. “A growing number of plaintiffs and lawyers are looking to exploit ERISA plan sponsors and fiduciaries for a quick payout, yet these lawsuits aren’t just an easy paycheck — every lawsuit strips dollars from an employer who is voluntarily maintaining a retirement plan for the benefit of employees. Solutions like Rep. Fine’s ERISA Litigation Reform Act protect the employers who provide for retirees and clarify standards to better understand when lawsuits have actual merit so fiduciaries can do their jobs: help retirees thrive.”
ERISA litigation is a hot topic, with reform top of mind among Daniel Aronowitz, the new assistant secretary of labor for the Employee Benefits Security Administration, and the American Retirement Association, which reports that lawsuits against 401(k) plan sponsors have increased in recent years. In 2023, for example, 42 settlements totaling $353 million were reached, according to the Plan Sponsor Council of America.
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