Judicial Review of ERISA Plan Administration Under the Arbitrary and Capricious Standard of Review

Under ERISA, employee benefit plan fiduciaries are afforded a great deal of discretion in regard to plan administrative and benefit distribution decisionmaking. After discussing the historical genesis of the arbitrary and capricious standard by which courts review plan fiduciary decisions, the autho...

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Bibliographic Details
Published in:Industrial relations law journal 1988-01, Vol.10 (3), p.400-425
Main Author: Johnson, Jamie L.
Format: Article
Language:English
Subjects:
Administrative courts
Administrative law
Collective bargaining
COMMENT
Disabilities
Employee pension plans
Human resources
Labor legislation
Pension eligibility
Pension plans
Trust administration
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Summary:Under ERISA, employee benefit plan fiduciaries are afforded a great deal of discretion in regard to plan administrative and benefit distribution decisionmaking. After discussing the historical genesis of the arbitrary and capricious standard by which courts review plan fiduciary decisions, the author suggests that post-ERISA application of the standard has led to curious and inconsistent results, affording plan fiduciaries too much discretion under certain circumstances. The author proposes that a proper review of plan fiduciary decisions should consider the legislative goals of ERISA, the type of decision made, and the structure of the plan for which the fiduciary exerts fiduciary authority. Only through considering such factors, the author concludes, will courts be affording proper weight to reasons underlying the grant of discretion to plan fiduciaries.
ISSN:0145-188X
2378-1874