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Committee advances ERISA litigation reform; supporters seek to curb early discovery, opponents warn of limits on participants' rights
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Summary
The committee agreed to an amendment in the nature of a substitute to HR 6084, the ERISA Litigation Reform Act, which raises pleading standards and temporarily stays discovery until motions to dismiss are resolved. Supporters said it protects plan assets from frivolous suits; opponents said it risks undermining remedies for participants and urged narrower changes.
Representative Fine, sponsor of HR 6084 (ERISA Litigation Reform Act), argued the bill would curb frivolous class actions that drain plan resources and divert money from retirement benefits. He described three reforms: placing heightened pleading burdens on some fee claims, tightening pleading standards for ESOP purchase-price challenges, and staying discovery until motions to dismiss are resolved. He said the measures are targeted at the earliest stages of litigation rather than barring meritorious claims.
Opponents including Representatives Courtney, Bonamici and Scott warned the bill broadly weakens ERISA enforcement and could harm participants in retirement and health plans, particularly if applied to health plan disputes. Rep. Courtney submitted an amendment to narrow the bill's application and preserve enforcement for health‑care plans; that amendment failed on recorded vote. Ranking Member Scott proposed amendments to preserve participant remedies; the committee debated multiple roll‑call amendments. Following debate and recorded votes, the committee agreed to report HR 6084 to the House as amended, and the transcript records the final recorded tally in support of reporting the bill.
