Protecting Workers’ Benefits Act
- Sponsor
- Rep. Scott, Robert C. "Bobby" [D-VA-3]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Oct 1, 2026
Bottom line
The bill aims to enhance accountability for ERISA plan fiduciaries by incentivizing participants and beneficiaries to initiate litigation on behalf of the plan, potentially increasing enforcement of fiduciary duties.
What it actually does
This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to explicitly allow individual plan participants or beneficiaries to bring legal actions on behalf of their retirement plans as assignees. It also stipulates that if such an action is successful, the participant or beneficiary who initiated it will receive a portion (between 0.5% and 1%) of the recovered plan assets, in addition to costs and expenses. The bill also clarifies that the plan itself can bring actions for relief under Section 409.
Proponents argue
Proponents argue that this bill strengthens worker protections by empowering individual participants and beneficiaries to act as private attorneys general, ensuring that fiduciaries who breach their duties are held accountable. They contend that the current enforcement mechanisms may be insufficient, and providing a direct financial incentive for individuals to pursue claims will lead to greater recovery of lost plan assets and deter misconduct, ultimately safeguarding retirement savings.
Opponents contend
Opponents might argue that this bill could lead to an increase in frivolous or opportunistic litigation, burdening retirement plans and fiduciaries with excessive legal costs. They may contend that existing Department of Labor enforcement and class action mechanisms are sufficient, and that creating a direct financial incentive for individual lawsuits could disrupt plan administration and divert resources from legitimate plan operations to legal defense.
The bill text is very short and can be read quickly, but its implications for ERISA litigation and plan administration are significant and warrant careful consideration beyond a superficial reading.
Section 2(1) of H.R. 10703, amending ERISA Section 502(a)(2)
Explicitly Authorizing Plans to Bring Actions
This provision inserts the word "plan," into ERISA Section 502(a)(2), which outlines who can bring a civil action for appropriate relief under Section 409 (which deals with liability for breach of fiduciary duty). This clarifies that a plan itself, in addition to the Secretary of Labor, a participant, beneficiary, or fiduciary, can initiate such legal action.
Supporters argue
Supporters would argue this simply clarifies existing legal understanding or strengthens the plan's ability to recover assets directly, aligning with the overall goal of protecting plan assets. It removes any ambiguity about a plan's standing in such actions.
Critics contend
No specific opposition is typically raised against this particular clarification, as plans generally act through their fiduciaries, and this amendment primarily codifies or clarifies existing practice rather than introducing a novel enforcement mechanism.
Tradeoffs
This provision primarily aims to remove ambiguity, so significant tradeoffs are not apparent. It reinforces the legal framework for plans to protect their assets.
Section 2(2) of H.R. 10703, adding new subsection (d)(3) to ERISA Section 502
Empowering Participants/Beneficiaries to Sue as Assignees and Receive a Share of Recoveries
This provision allows individual plan participants or beneficiaries to bring a lawsuit on behalf of the plan (as an assignee) to recover losses due to fiduciary breaches. If the lawsuit is successful or settles, the recovered funds become plan assets. Crucially, the participant or beneficiary who initiated the action is entitled to receive between 0.5% and 1% of the recovered amount, plus legal costs. If multiple individuals bring such an action, the court will distribute this percentage equitably among them. The provision also requires consolidation of similar pending actions.