Navigating Pension Risk Transfer Challenges and Claims: Recent Cases, Article III Standing, Fiduciary Standards, and More

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
ERISA
- event Date
Tuesday, June 24, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will provide ERISA counsel and plan sponsors an in-depth analysis of pension risk transfers and other de-risking transactions in light of recent class action lawsuits. The panel will discuss the anatomy of de-risking transactions, recent court cases regarding pension risk transfers, Article III standing and key issues, fiduciary standards under ERISA when selecting an annuity provider, litigation risks, and managing claims.
Faculty

With 17 years of experience as a labor and employment litigator with Seyfarth Shaw, Ms. Dolph is an advisor to clients in the airline, retail, healthcare and manufacturing industries. Her practice focuses on advice and counsel and innovative litigation involving complex procedural defenses, including preemption of state law claims under ERISA, Railway Labor Act, Airline Deregulation Act, Federal Aviation Act, and the Servicemembers' Group Life Insurance Act (SGLIA); Article III and statutory standing; statute of limitations; and administrative exhaustion requirements, among others; Illinois Biometric Information Privacy Act (BIPA) claims, prevailing as lead counsel in the first BIPA case to be heard by the U.S. Court of Appeals for the Seventh Circuit; whistleblower claims under state law, AIR21, Dodd-Frank and Sarbanes-Oxley; discrimination claims in state and federal jurisdictions across the country, including under Title VII, ADA, Section 1981, and the ADEA, and their state law counterparts, including systemic actions brought by the EEOC; ERISA single, multi-plaintiff and class action matters involving denial of health, disability, life, pension and 401(k) benefits, including defense of high profile “stock drop,” retiree medical and 401(k fee class actions.

Ms. Kohn is a partner in the firm’s Employee Benefits & Executive Compensation group. She counsels small businesses, Fortune 500 companies, nonprofits, individual owners, boards of directors, unsecured creditors’ committees and plan sponsors on qualified and nonqualified retirement plans, multiemployer (union) plans and health plans with a specific focus on bankruptcies, mergers and acquisitions and corporate planning. Ms. Kohn assists her clients in finding practical and valuable solutions regarding plan mergers and spinoffs, plan de-risking transactions, plan terminations, plan corrections, overfunded plans and corporate transactions and reorganizations involving retirement and health plans. She also counsels her clients on matters related to multiemployer plan issues, including withdrawal liability and benefits litigation. Ms. Kohn advises private funds and benefit plan investors on ERISA compliance issues, particularly with regard to disclosure, plan investment issues and negotiations.

Ms. Reagan concentrates her practice in the area of employee benefits, with a focus on ERISA litigation. She represents plan sponsors, trustees, and other fiduciaries in a wide range of employee benefits cases, including 401(k) class action litigation, claims for medical, disability, and pension benefits, and cases involving executive compensation. In addition to her litigation practice, Ms. Reagan counsels clients on a variety of matters, including fiduciary responsibility and regulatory compliance. She also represents plan fiduciaries in Department of Labor investigations.
Description
A slew of cases involving claims against pension risk transfer transactions have been developing over the past year. Plaintiffs claim that plan fiduciaries breached their fiduciary duties to plan participants by electing to transfer pension liabilities to an annuity provider alleging that such transactions were not the safest or in the best interest of the plan. ERISA counsel must recognize the impact of recent cases on pension risk transfer transactions and ensure compliance with ERISA.
In a defined benefit pension plan, participants are eligible to receive a fixed payment of benefits upon retirement based on a formula set out in the plan documents. While plan participants have rights to the accrued value of the benefits, the plan sponsor bears all investment risks and must cover any losses. As a result, plan sponsors may engage in pension risk transfer transactions.
A pension risk transfer involves the purchase of an annuity contract from an insurer to manage liability and investment risk. The insurer then becomes obligated to pay the benefits to plan participants under the same terms as stated in the pension plan. These transactions are considered to be a transfer of assets from the plan to the insurers.
Recently, cases have been filed where plaintiffs allege that the plan sponsor and fiduciaries caused them harm by removing their benefits from an ERISA plan. However, two district court opinions have reached opposite conclusions on Article III standing to challenge pension risk transfers, adding a level of confusion regarding such claims.
Listen as our panel discusses the anatomy of de-risking transactions, Article III standing and key issues, fiduciary standards under ERISA when selecting an annuity provider, litigation risks, and managing claims.
Outline
I. Anatomy of pension risk transfer transactions
II. Fiduciary standards under ERISA
III. Recent cases
IV. Minimizing litigation risk and claims
Benefits
The panel will discuss these and other key issues:
- What are the key considerations in structuring de-risking transactions?
- What are the key components of plaintiffs' arguments in recent class actions regarding pension risk transfer transactions?
- What are the fiduciary duties under ERISA?
- What are the key issues raised regarding Article III standing?
- How can you minimize litigation risk and claims?
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