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119-hr-10703119th CongressWALLET

Protecting Workers’ Benefits Act

Sponsored By: Representative Scott, Robert C. "Bobby" [D-VA-3]

Introduced

Summary

Creates a new legal route for retirement plan participants and beneficiaries to sue as assignees to recover plan losses. It would also make recovered money part of the plan's assets and set a small, court-limited fee for successful plaintiffs.

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  • Participants and beneficiaries: They would be able to bring actions as assignees under ERISA section 502(a)(2) to pursue relief under section 409. They must serve a copy of the complaint on the plan and, if the plan prevails or a settlement occurs, are treated as having an equitable interest and receive between 0.5 percent and 1 percent of the recovery plus any court-awarded costs.
  • Plans and plan assets: Amounts recovered in such suits would be treated as plan assets. That affects who controls recovered funds and how settlements are allocated between the plan and successful plaintiffs.
  • Court process: If another action involving substantially the same allegations is already pending, a participant or beneficiary bringing an action must promptly move to consolidate. Courts must equitably distribute the plaintiff allocation among named plaintiffs in class actions and among each plaintiff in non-class actions.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Plan participants can sue for relief

If enacted, plan participants and beneficiaries would be able to sue on a plan's behalf under ERISA section 502(a)(2) to seek relief under section 409. The person bringing the case would have to serve a copy of the complaint on the plan. Any money recovered if the plan prevails, substantially prevails, or settles would be treated as plan assets. The participant who brings a winning or settled action would receive between 0.5 percent and 1 percent of the recovery. They could also get other court-ordered relief, including costs and expenses. If more than one person sues, the court would distribute the plaintiffs' award fairly. A participant who files a case that duplicates existing litigation would have to promptly move to consolidate it. This rule would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Scott, Robert C. "Bobby" [D-VA-3]

VA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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