Washington, D.C., March 17, 2026 – Today, Andy Banducci, Senior Vice President of Retirement and Compensation Policy at The ERISA Industry Committee (ERIC), issued the statement below following action by the U.S. House Education and Workforce Committee to advance the ERISA Litigation Reform Act (H.R. 6084).
“Retirement plan sponsors are under attack. One recent analysis highlights that more than one-half of plans with more than $1 billion in assets have faced at least one excessive fee or investment performance lawsuit. Similarly, plans with $500 million or more in assets have nearly a 10% chance of being sued in a given year.
The ERISA Litigation Reform Act is a helpful and reasonable step toward addressing the flood of ERISA class action cases. The bill advances two much-needed reforms. First, a plaintiff alleging that a contract between a plan and a plan service provider constitutes a prohibited transaction under ERISA must specifically explain why the arrangement does not meet the statutory exemption as a necessary and reasonable service-provider arrangement. Second, it would pause the discovery process while motions to dismiss are pending. ERIC applauds the House Education and Workforce Committee for advancing this legislation because it restores balance without preventing plaintiffs from advancing meritorious claims.”