ERISA Does Not Preempt State Law Prohibiting Discretionary Clauses

DMEC StaffCompliance, Legislative Updates, Resources

In Fontaine v. Metropolitan Life Ins. Co., the Seventh Circuit affirmed a U.S. District Court for the Northern District of Illinois that Illinois’ anti-discretionary clause regulation prohibiting discretionary clauses in insured employee benefits plans offered or issued in Illinois, was outside the range of the preemption power of ERISA (Employee Retirement Income Security Act of 1974).

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