ERISA 510 claim?

[Guest pensioneer]

Curious if anyone has an opinion with regard to this situation:

Employee leaves, DB plan pays lump sum distribution. Former employee returns later making a claim that the distribution was not calculated properly. Claim is based upon non-discretionary factors in plan. Former employer, who is also Plan Admin, responds with threats of civil suit on completely unrelated matters should the former employee pursue her benefits claim. This goes on for a while until it is clear admin remedies are exhausted.

Would something like this be grounds for a civil action under ERISA 510? or is there something else?

much appreciated

[Guest Sieve]

I don't think so (although I have not done the research). Anyone who files suit should realize--and certainly should be advised by his/her attorney--that the defendant in that action has the right (and, perhaps, even the obigation) to bring any actions they may have (i.e., their own lawsuit against the plaintiff). That is always a risk a plaintiff takes. (That's why, e.g., a CPA or lawyer bringing a collection action against a client may find a malpractice action initiated by the defendant as part of the defendant's answer.) Now, threat of a criminal action is another story entirely.

Your attorney should advise you whether a 510 claim should be part of your action for benefits.

[Guest pensioneer]

Thanks - I don't think there is a question of the right to bring a separate suit, her question is can the threat of such a suit be used to try and prevent her from making a benefits claim. In a sense it seems like extortion.