FIDUCIARY/PENSIONS ALERT: Decision to Terminate ERISA Benefits Arbitrary and Capricious
Close
 

FIDUCIARY/PENSIONS ALERT: Decision to Terminate ERISA Benefits Arbitrary and Capricious

Third Circuit – Pennsylvania – January 25, 2011. An ERISA plan administrator’s decision to terminate an employee’s long-term disability benefits without substantial evidence or even new information did not pass the arbitrary and capricious test.  In addition to having no new information after paying benefits for seven years, the plan administrator operated under a structural conflict of interest favoring the employer if the benefits are terminated, and relied on non-existent plan requirements, as well as other deficiencies. 

 

70 Miller v American Airlines 2-10.pdf