9th Circuit holds inaccurate pension statements violate ERISA: Bafford et al. v. Administrative Committee of the Northrop Grumman Pension Plan

In Bafford et al. v. Administrative Committee of the Northrop Grumman Pension Plan, (9th Cir.)           F.3d           (May 10, 2024), the Court of Appeals for the Ninth Circuit held that inaccurate pension statements violate ERISA’s disclosure requirements and are penalizable.

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Plaintiffs repeatedly requested pension statements online but received them only after calling Defendant.  After retiring, they received monthly payments consistent with those statements, but Defendant later informed them their benefits were overcalculated. Plaintiffs sued, alleging breach of fiduciary duty, violation of ERISA’s disclosure requirements, and state law violations. The district court dismissed all claims. On initial appeal, the Ninth Circuit affirmed dismissal of the fiduciary duty claim, reversed dismissal of the state law claims, and vacated dismissal of the ERISA claims. On remand, the district court again dismissed the ERISA claims, ruling that the statute did not require accurate statements. Plaintiffs appealed.

On appeal, the Ninth Circuit reversed and remanded, holding that a pension benefit statement with a substantially inaccurate amount does not comply with the plain language or statutory intent of ERISA’s reporting requirement. It also held that Plaintiffs’ electronic requests were “written requests” under ERISA and that they could seek statutory penalties under 29 U.S.C. § 1132(c)(1) and equitable relief under § 1132(a)(3). Additionally, the Ninth Circuit clarified that penalties under § 1132(c)(1) do not require a finding of bad faith.

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