Washington, D.C., August 11, 2025– On Friday, August 8, The ERISA Industry Committee (ERIC) and coalition allies filed an amicus brief in the U.S. Court of Appeals for the Fourth Circuit in Konya v. Lockheed Martin Corporation(Konya). The brief urges the Court to dismiss the suit.
Konya is part of a wave of lawsuits challenging common transactions expressly permitted under the Employee Retirement Income Security Act (ERISA). The putative class action by former employees targets a “pension risk transfer” (PRT) in which Lockheed Martin Corporation’s defined benefit pension plan purchased annuity contracts from an insurance company by transferring assets, making the insurer liable for the employees’ pension benefits. Plaintiffs challenged the transaction under ERISA’s fiduciary duty rules. The amicus brief urged the court to review the case and to dismiss it. The brief explained that the plaintiffs lack standing to sue because they failed to allege an actual injury to their legal interests stemming from the transaction.
“Each of these PRT cases claims, without offering evidence, that the transactions will increase the risk of participants losing benefits,” said Andy Banducci, Senior Vice President for Retirement and Compensation Policy at ERIC. “But this mere inference is not evidence of an injury. If cases like these move forward, plan sponsors will have to divert precious resources toward more legal battles, leaving less for the retirement plans employees rely on for financial security. The court should take this crucial opportunity to protect both employers and employees from these speculative claims.”
In addition to ERIC, the Chamber of Commerce of the United States of America and the American Benefits Council joined the amicus brief. Goodwin Procter LLP prepared the amicus brief, which is available here.