Washington, D.C., August 4, 2025 – Today, The ERISA Industry Committee (ERIC) and coalition allies filed an amicus brief in the U.S. Court of Appeals for the Fourth Circuit to uphold the judgment in Milligan v. Merrill Lynch (Milligan). In its brief, the amici supported the lower court’s correct determination that bonus compensation programs are not “pension plans” regulated by the Employee Retirement Income Security Act (ERISA).
At issue in Milligan is whether the deferred compensation award programs offered by Merrill Lynch qualify as “employee benefit pension plans” under ERISA. The district court held that these widely used programs are not ERISA pension plans. This decision aligns with the text of the statute, reflects longstanding Department of Labor guidance exempting “bonus” incentive programs, and is consistent with other judicial decisions.
“The lower court rightly found that bonus compensation programs like the one in Milligan are not ERISA pension plans. These discretionary, performance-based incentives were never intended as retirement benefits, and the court correctly recognized them for what they are—tools to reward performance and help employers attract and retain top talent,” said Andy Banducci, Senior Vice President for Retirement and Compensation Policy at ERIC. “By upholding the lower court’s decision, along with nearly a half-century of case law and regulatory guidance, the Court prevents two bad outcomes. First, it stops the plaintiffs’ bar from weaponizing ERISA as a novel and expensive litigation tool—sparing employers from a surge in costly lawsuits. Second, it helps protect customers from those costs in the form of higher prices and employees from reduced compensation and opportunities.”
ERIC is a national advocacy organization exclusively representing the largest employers in the United States in their capacity as sponsors of employee benefit plans for their nationwide workforces. With member companies that are leaders in every economic sector, ERIC is the voice of large employer plan sponsors on federal, state, and local public policies impacting their ability to sponsor benefit plans. ERIC member companies offer benefits to tens of millions of employees and their families, located in every state and city across the country.
ERIC joined the U.S. Chamber of Commerce, the Center on Executive Compensation, and the American Benefits Council on the brief. Mayer Brown LLP prepared the amicus brief, which is available here.