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The Estopped Fiduciary: When May Participants Rely on Incorrect Calculations?
Osler, Hoskin & Harcourt LLP
Apr. 14, 2015 "[A recent] Ninth Circuit decision clearly states that estoppel is not available where relief ... would contradict the written plan provisions. However, [in] another decision in Michigan ... a retiree named Paul successfully sued to estop a plan from correcting pension overpayments. Why did Paul succeed and should plan fiduciaries be worried about this decision? ... [U]se of clear disclaimers is still a good practice. Regular self-audits should still permit plan sponsors to correct typical honest mistakes. And this whole lawsuit could have been avoided if the elements of Paul's calculation had been carefully checked when he asked about his service." [Paul v. Detroit Edison, No. 13-14256 (E.D. Mich. Mar. 30, 2015)] MORE >> |
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