Administration--delayed benefits payment; interest. Fotta v. Trustees of the United Mine Workers of America, Health and Retirement Fund of 1974, 165 F.3d.209 (3rd Cir. 1998).
In a case of first impression, the Third Circuit holds that a beneficiary of an ERISA plan may sue the plan for interest on delayed benefits payments under Section 502(a)(3)(B) regardless of whether he also seeks to recover unpaid benefits. A beneficiary is not made whole when a plan pays benefits after delay since he has lost the time value of the money. Interest for delayed benefits payments is appropriate equitable relief that prevents the plan from being unjustly enriched at the beneficiary's expense. Since interest is money damages that is restitutive in nature, it is a form of equitable relief. Interest is not prohibited as "extracontractual" since it is compensation that is part of the contractual obligation.
D019461:Employee Retirement Income Security Act; D005376:Financial Management / Q000331:legislation & jurisprudence* / Q000458:organization & administration; D006801:Humans; D007750:Labor Unions / Q000331:legislation & jurisprudence; D010415:Pensions; D012456:Salaries and Fringe Benefits / Q000331:legislation & jurisprudence*; D014481:United States