ERISA Litigation Reform Act Heads to House Committee Markup
The ERISA Litigation Reform Act, H.R. 6084, is one of seven bills that will be marked up Tuesday by the House Committee on Education and Workforce, chaired by Rep. Tim Walberg (R-MI).
The markup will be live-streamed on the Committee’s YouTube page, starting at 10:15 a.m. EDT Tuesday.
Congressman Randy Fine (R-FL) introduced the ERISA Litigation Reform Act back on Nov. 18. Per a release from Rep. Fine’s office, the bill seeks to amend ERISA to “clarify the burden of proof in certain fiduciary-related claims and establish a targeted stay of discovery during early stages of litigation,” to safeguard a “predictable, fair, and efficient legal framework,” for retirement plan fiduciaries, employers, and participants.
“American workers deserve retirement plans that are well-run and well-protected, not drained by abusive litigation tactics,” Rep. Fine in the release. “This bill strengthens fiduciary accountability while preventing meritless lawsuits from driving up plan costs and reducing workers’ retirement security.”
Education and Workforce Committee Chairman Walberg said that such class action lawsuits against ERISA plan sponsors and fiduciaries “prey” on voluntary retirement plans.
“Solutions like Rep. Fine’s ERISA Litigation Reform Act protect the employers who provide for retirees and clarify standards to better understand when lawsuits have actual merit so fiduciaries can do their jobs: help retirees thrive,” Walberg said.
During a Dec. 2, 2025, Committee on Education and Workforce hearing titled, “Pension Predators: Stopping Class Action Abuse Against Workers’ Retirement,” Rep. Fine discussed how his proposed legislation seeks to curtail meritless lawsuits.
“There are bad actors that need to be sued, but there are also plenty of bad lawyers who take advantage of the system. What my bill intends to do is to strike that balance to give people the opportunity to sue when that bad [action] does take place but also to protect people from having their retirement savings sucked away from unscrupulous lawyers,” Fine said.
The bill would curb ERISA lawsuits by making it more difficult for certain prohibited transaction claims to survive a motion to dismiss. The U.S. Supreme Court’s unanimous ruling last year in Cunningham v. Cornell set a low bar for what plaintiffs must plead in these cases to avoid dismissal and proceed to the discovery phase of litigation. The bill would override that ruling by amending ERISA to require a higher pleading standard for prohibited transaction claims involving the payment of allegedly excessive compensation to plan service providers.
Although the bill wouldn’t alter the pleading standard for fiduciary breach allegations, the Trump administration has been advocating for federal courts to apply more sponsor-friendly standards. Daniel Aronowitz, assistant secretary of Labor for the Employee Benefits Security Administration (EBSA), has repeatedly advocated for stricter pleading standards to combat the wave of ongoing ERISA suits. In an amicus brief related to the Cunningham v. Cornell case, Aronowitz urged the Supreme Court to adopt more robust pleading standards, stating that current suits have shifted voluntary employee benefit programs into potential liabilities for fiduciaries.
After a bill is marked up in committee, members vote on whether to report it favorably to the full chamber. If approved, the committee prepares a written report justifying their actions, and the bill is placed on the calendar for floor consideration. If not approved, the bill dies.
The markup session can be viewed live here starting at 10:15 a.m. EDT Tuesday.
SEE ALSO:
• 401(k) Specialist Deep Dive: How Not to Get Sued
• Lawmaker Introduces Bill Supporting Pleading Standards for ERISA Suits
• ‘Pension Predators’ Hearing Targets Abusive ERISA Lawsuits
• Trump EBSA Nominee Aronowitz Calls for Specialized ERISA Court
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.