Thole v. U.S. Bank, N.A.
Issues
Does a defined-benefit pension plan participant have standing to seek injunctive relief or restoration of plan losses without demonstrating any personal financial loss?
In this case, the Supreme Court will decide whether ERISA plan participants have standing to sue for breaches of fiduciary duty where the underlying employee benefit plan is overfunded. Thole and Smith argue that they have standing under 29 U.S.C. § 1132(a)(2)–(3) and the common law of trusts because neither conditions standing on a showing of individual financial loss. U.S. Bank counters that Thole and Smith have not suffered an injury sufficient to support standing because their retirement benefits were never actually at risk and they have no interest in a plan’s overfunded surplus. The outcome of this case will determine the circumstances in which certain plan participants may enforce ERISA violations.
Questions as Framed for the Court by the Parties
(1) Whether an ERISA plan participant or beneficiary may seek injunctive relief against fiduciary misconduct under 29 U.S.C. § 1132(a)(3) without demonstrating individual financial loss or the imminent risk thereof; (2) whether an ERISA plan participant or beneficiary may seek restoration of plan losses caused by fiduciary breach under 29 U.S.C. § 1132(a)(2) without demonstrating individual financial loss or the imminent risk thereof; and (3) whether petitioners have demonstrated Article III standing.
James Thole and Sherry Smith are retirees of U.S. Bank, N.A. (“U.S. Bank”) and participants in its defined benefit pension plan (the “Plan”). Thole v. U.S.
Edited by
Additional Resources
- John Manganaro, Supreme Court Asked if Well-Funded Pensions can Harm Participants, PLANSPONSOR (June 19, 2019).
- The Supreme Court’s ERISA Docket – Thole v. U.S. Bank – may participants in an overfunded DB plan sue sponsor-fiduciaries for a fiduciary breach?, October Three (July 10, 2019).