On January 20th, the U.S. Supreme Court will hear arguments in the appeal of the 2nd Circuit case of Frommert v. Conkright, 433 F.3d 254 (2006). At stake is the issue of how much deference should be given to ERISA plan administrators when they interpret a plan and account for benefits. The administrators argued that they were entitled to discretionary authority under Firestone Tire & Rubber Co. v. Bruch (1989), while the beneficiaries want the courts to be able to form any reasonable interpretation of the plan even if it's contrary to the administrator's interpretation.
Posted on January 11, 2010