Washington D.C. Benefits Law Blog

The nation's highest court may rule in Washington, D.C., on which party is responsible for proving loss causation when a dispute over the management of defined contribution benefit plans goes to court. One company currently involved in such a case appealed to the Supreme Court to settle the disparate approaches taken among federal appeals courts about who must prove losses when plan members file suit over fiduciary breaches of the Employment Retirement Income Security Act (ERISA), which protects employee benefits from misuse or fraud.

One company involved in an ERISA benefits dispute has requested that the Supreme Court rule on the issue to provide a definitive national framework for assessing loss causation. In six appellate courts, plaintiffs suing the fiduciaries of these plans have the burden of proof to show that losses were caused by fiduciary breaches of duty. On the other hand, four courts have ruled that the defendants must show that losses were not caused by any breaches of fiduciary duty. The petition noted that the high court is well-placed to resolve this fundamental divide that can mean similar cases are treated substantially differently, even under a uniform national law.

Governmental agencies employ many workers in Washington D.C. These organizations generally qualify for the government exemption to operational rules for pension and benefit plans imposed by the Employee Retirement Income Security Act. A brewing class action lawsuit brought by a group of current and former hospital employees has challenged the health care organization's assertion that ERISA rules do not apply to its health plan because it is a governmental entity.

The lawsuit maintains that the hospital has no recognizable basis for declaring itself exempt from ERISA regulations that normally apply to private employers. If the hospital had followed ERISA rules, then it would not have allegedly engaged in self-dealing transactions with affiliates and vendors that unnecessarily increased health care costs for plan participants.

A number of changes have been made to the procedures involved with ERISA benefits claims that may affect workers and employers in the Washington, D.C., metropolitan area. It is important for workers and their employers to be aware of these changes because they could impact the way in which disability claims are handled.

The U.S. Department of Labor issued rules that impact long-term disability plans. The rules also have an impact on other ERISA benefits, including tax-deferred retirement plans, defined benefit pensions and certain deferred compensation plans for executives.

Workers within the federal and public service sectors in Washington D.C. focus their careers on community-oriented goals. As a reward for serving social needs like teaching, you earn extensive benefits that include retirement savings, health insurance and disability insurance. You work hard with the expectation of falling back on these generous programs in your time of need, and a benefits denial hits especially hard when you have given years of service to an organization. You might need outside legal advice to get clear information about the appeals process that would not be forthcoming from your employer.

Your financial security during a medical crisis or retirement depends on getting fair consideration from your benefits administrator. The terms that govern your plan benefits will vary depending on whether you work in a public or private setting. An attorney knowledgeable about benefits programs could review your situation and provide insights about your rights to coverage and compensation.