In an article in the January 2025 edition of Missouri Lawyers Weekly, John Westerhaus emphasizes the importance of vigilance in navigating The Employee Retirement Income Security Act of 1974 (ERISA), a complex federal law designed to protect employee’s retirement and health plan benefits.

The article, titled “ERISA 2025: Preparing for a Litany of Litigation and a New Administration,” highlights the evolving arena of ERISA litigation as 2025 begins. The focus remains on cases involving excessive fees, fiduciary breaches, and mental health parity violations, which have steadily increased over the past decade. Initially targeting large pension funds, fiduciary breach litigation has expanded to smaller retirement plans and businesses, creating significant risks for plan sponsors.

The Supreme Court’s decision last year in Loper Bright v. Raimondo, which overturned the Chevron doctrine, is expected to reshape ERISA litigation. Courts now will interpret regulations independently, without deferring to administrative agencies. This shift may significantly affect ongoing challenges to U.S. Department of Labor (DOL) rules, such as those involving Environmental, Social, and Governance (ESG) factors tied to fiduciary duties. Additionally, ongoing disputes over excessive 401(k) fees, arbitration clauses, and plan mismanagement are anticipated to dominate litigation in the coming year.

In the article, John explains ERISA’s origins, rooted in the need to protect workers’ pensions following the collapse of the Studebaker Corporation. He emphasized the importance of prudent governance processes in managing plans to avoid fiduciary breach allegations. John also noted that the increasing complexity of ERISA compliance makes regular audits and vigilance essential as litigation risks grow.

The article concludes that, as ERISA litigation continues to rise, plan sponsors and administrators must stay informed and prepared to mitigate risks. Compliance with evolving rules and proactive governance will be key to avoiding costly lawsuits and maintaining trust with plan participants.

Read the full article here. (Subscription required)

John advises plan sponsors and fiduciaries regarding the design, implementation, administration and operation of employee benefit plans to minimize client risk and maximize client value. This includes developing a range of practical solutions to complex compliance problems and translating the associated legal issues into discrete decision points. John works with welfare and retirement plans in a variety of industries, with particular emphasis on advising Taft-Hartley (multiemployer) and governmental plans. This practice includes resolving benefit determination and appeal issues, drafting plan documents, policies and amendments, reviewing and negotiating service provider and investment agreements, and presenting or training on fiduciary and compliance topics. John represents employee benefit plans in litigation or other adversarial proceedings, both as plaintiffs and as defendants.