Congressman Fine Introduces ERISA Litigation Reform Act to Strengthen Legal Standards and Protect Retirement Plans

Washington, DC: Last week, Congressman Randy Fine introduced the ERISA Litigation Reform Act, this legislation strengthens pleading standards for lawsuits brought under the Employee Retirement Income Security Act of 1974 (ERISA). The bill ensures that retirement plan fiduciaries, employers, and participants operate under a more predictable, fair, and efficient legal framework. The ERISA Litigation Reform Act clarifies the burden of proof in certain fiduciary-related claims and establishes a targeted stay of discovery during early stages of litigation. The targeted stay brings ERISA more in line with established federal court practices designed to deter frivolous lawsuits. “Frivolous class action lawsuits against ERISA plan sponsors and fiduciaries prey on a voluntary system that exists to provide retirement savings. 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.” - Education and Workforce Committee Chairman Tim Walberg (R-MI) “American workers deserve retirement plans that are well-run and well-protected, not drained by abusive litigation tactics,” said Congressman Randy Fine. “This bill strengthens fiduciary accountability while preventing meritless lawsuits from driving up plan costs and reducing workers’ retirement security.” Congressman Fine emphasized that this legislation strengthens retirement plan governance, reduces unnecessary legal costs, and protects the millions of Americans who rely on employer-sponsored plans for their financial future. The bill has been referred to the House Committee on Education and Workforce, which has jurisdiction over ERISA.