Couple Uses ERISA to Sue for Same-Sex Spousal Benefits

Conshohocken, PAA man has filed an ERISA lawsuit against his employer, alleging the employer violated ERISA benefits laws by denying his husband health care coverage. Although the Employee Retirement Income Security Act (ERISA) prohibits discrimination, it may be overridden by other federal laws, including laws that do not recognize same-sex marriage.

According to Business Insurance (2/14/13), the lawsuit was filed by Bryce Ginther, who works as an industrial electrician at a steel mill. He applied to have his husband, Kit Kineef, added as a spousal dependant under his employer’s benefits plan, but was denied on the grounds that same-sex partners were not eligible for spousal benefits. Ginther then filed his lawsuit, alleging that the term “spouse” is not defined in the plan description so there are no grounds to deny the application.

ERISA does have provisions to prevent discrimination, but it is not clear if they would extend to same-sex marriages, since there are other federal laws that do not recognize same-sex marriage.

The lawsuit seeks $110 a day from the day the denial was issued, CBS Philly reports (2/15/13), and was filed February 11 in the US District Court for the Eastern District of Pennsylvania.

Meanwhile, a lawsuit has been filed against Fidelity Investments alleging the company was involved in “fiduciary self-dealing.” According to Pensions & Investments (2/7/13), the lawsuit was filed by participants in three 401(k) plans, including a Delta Air Lines Inc. plan, alleging Fidelity deposited plan assets in an interest-bearing account before distributing the assets according to plan participants’ wishes. Money made off the assets while in the accounts - called float income - should have been the plans’ assets, plaintiffs allege, but was used by Fidelity to pay its own fees.

A spokesperson for Fidelity told Pensions & Investments that the company’s practices comply with both ERISA and the Department of Labor.

The Employee Retirement Income Security Act (ERISA) is a federal law originally enacted in 1974. It covers various benefits plans including pensions and health care plans offered by employers. Because of how the law is set out, people who file an ERISA lawsuit are not eligible for punitive damages, so any lawsuit will like only recover the benefits or assets that were lost. Not all pension or health care plans offered by employers are ERISA plans.