Plans, participants, and beneficiaries could bring workplace-benefit lawsuits

A workplace benefit plan would be allowed to bring an action under section 502(a)(2) of the federal employee benefits law. This applies to plans covered by the federal employee benefits law.

A participant or beneficiary could bring a lawsuit as the plan’s assignee and on the plan’s behalf. The lawsuit must seek the type of relief referenced in sections 409 and 502(a)(2) of the federal employee benefits law. The person must give the plan a copy of the complaint. If another case already involves substantially the same allegations, the person must promptly ask the court to combine the cases when appropriate.

The recovery would become a plan asset, and the participant or beneficiary who sued would gain a legal stake in how plan assets are distributed. This applies when the plan wins or largely wins the case, or when the parties reach a settlement. The award must be at least 0.5% and no more than 1% of the amount recovered. A court may also award other relief, including case costs and expenses. When more than one person sues, the court must divide the award fairly among all plaintiffs or among the named plaintiffs in a class action.