Technical Bulletin – 2016 Issue 2 – Supreme Court Sends ERISA Plans Racing to the Courthouse for Subrogation Recoveries

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A recent Supreme Court decision opens the door for participants in ERISA-covered benefits plans to stop a lawsuit against them in its tracks by doing something that most people love to do — spending money. The Court held that ERISA fiduciaries cannot exercise subrogation rights to recover settlement funds from a plan participant who has already spent the money on “nontraceable assets.” This Technical Bulletin, co-published with the law firm of Cozen O’Connor, discusses that decision.