§1370 Enforcement Authority Relating to Terminations of Single-employer Plans

Summary

People connected to a single-employer plan can sue if they are hurt by someone (not the federal corporation) breaking the rules in sections 1341, 1342, 1362, 1363, 1364, or 1369. Who can sue: fiduciaries (people who manage the plan), contributing sponsors or members of their controlled group (companies that fund the plan), participants and beneficiaries (workers and those who get benefits), and employee organizations (like unions) that represent those workers. A suit can ask a judge to stop the bad act or to give fair relief to fix or enforce the rule. A plan itself can be sued as an entity. Serving a trustee or administrator counts as serving the plan. If no agent for service is named, serving a contributing sponsor counts. Money judgments can only be collected from the plan unless someone is separately found liable. Federal district courts have exclusive power over these cases, and suits can be filed where the plan is run, where the violation happened, or where a defendant lives or can be found. The federal corporation must get a certified-mail copy of the complaint and may join the case. Courts may award costs and fees to a winning party, but a plan cannot be forced to pay those costs. A lawsuit must be started no later than the later of 6 years after the problem began or 3 years after the plaintiff knew (or should have known) about it. If a plaintiff is a fiduciary who sues as part of their duties, the 3-year clock starts when they became fiduciary if that date is later. If there was fraud or concealment, the 3-year limit becomes 6 years.