United States: Retirement, Superannuation & Pensions

In a significant en banc decision, Bolton v. Inland Fresh Seafood Corporation of America, Inc., No. 24-10084, the United States Court of Appeals for the Eleventh Circuit overruled its four-decade-old precedent in Mason v. Continental Group, Inc., 763 F.2d 1219 (11th Cir. 1985), and found that ERISA does not require plaintiffs to exhaust administrative remedies before bringing statutory claims—including claims for breach of fiduciary duty.

The Labor Department faces a regulatory dilemma as it moves to restrict ESG considerations in 401(k) plans while simultaneously seeking to expand access to private-market investments. This tension creates uncertainty for plan sponsors who must navigate conflicting policy objectives, particularly as many private investment strategies inherently incorporate both financial returns and social or environmental goals.

The Ninth Circuit Court of Appeals has once again invoked the effective vindication doctrine to strike down an ERISA plan arbitration clause, ruling that provisions preventing representative actions and plan-wide relief violate participants' substantive rights under federal law. This decision adds to a growing body of federal appellate precedent challenging the enforceability of arbitration clauses in 401(k) plans, raising critical questions about how plan sponsors should structure dispute resolution mechan