Bristol Myers Squibb’s $2.6 Billion Pension Risk Transfer Lawsuit Is ‘Frivolous,’ Say Industry Groups

The ERISA Industry Committee, along with two other industry groups, is seeking the dismissal of the drugmaker’s PRT class-action lawsuit over the transfer of its pension plan to Athene Annuity, alleging a breach of fiduciary duties.

By Lynn Cavanaugh | January 30, 2025 at 12:21 PM

As the retirement industry evolves from guaranteed lifetime pension plans to 401(k)s, pension risk transfers (PRTs) have become the linchpin connecting the past, present, and future of retirement benefits. Pension risk transfers enable firms to offload the burdensome administration of allocating pension plan.

Bristol-Myers Squibb is one firm that offloaded its $2.6 billion pension plan in 2019 and has been hit with a “frivolous lawsuit,” according to the ERISA Industry Committee, which is now petitioning the court to dismiss the lawsuit.

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1 U.S. Economy Grew 2.3% in Q4/2024

2 Bristol Myers Squibb’s $2.6 Billion Pension Risk Transfer Lawsuit Is ‘Frivolous,’ Say Industry Groups

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JPMorgan Is the Latest Employer to Get Sued over ‘Wrongful Use’ of 401(k) Forfeited Funds

By Lynn Cavanaugh | January 27, 2025

The banking giant has been hit with a class-action lawsuit alleging it used retirement plan contributions from departing employees to “offset its employer contributions” rather than reducing plan administrative fees, violating ERISA.

JPMorgan Is the Latest Employer to Get Sued over ‘Wrongful Use’ of 401(k) Forfeited Funds

Construction Firm Bechtel Wins 401(k) ‘Excessive Fees’ Lawsuit, Again

By Lynn Cavanaugh | January 17, 2025

A federal judge has dismissed—for the second time—a lawsuit against Bechtel Global that alleged the $5.7 billion plan’s default managed account investment led to excessive fees and subpar returns, arguing that a target-date fund would have been a better alternative.

Court Determines American Airlines Breached Its Fiduciary Duty by Prioritizing ESG Goals in 401(k)

By Lynn Cavanaugh | January 14, 2025

A federal judge in Texas ruled that the company violated its ERISA duties by not focusing “on the best financial benefit” for its 401(k) plan—the biggest victory yet in a case involving ESG investing.

Court Determines American Airlines Breached Its Fiduciary Duty by Prioritizing ESG Goals in 401(k)

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