Supreme Court Limits Subrogation Recoveries

John GarnerCompliance, Resources

The Supreme Court of the United States has held that when a participant in a plan covered by the Employee Retirement Income Security Act of 1974 (ERISA) wholly dissipates a third-party settlement on non traceable items, the plan fiduciary may not bring suit to attach the participant’s separate assets. This case is likely to prompt plans to act more quickly in the future when third-party reimbursements are involved.

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