‘Reasonable’ statutes of limitation OK under ERISA — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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‘Reasonable’ statutes of limitation OK under ERISA

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in Employment Law,Human Resources

Wading into perhaps the most mundane issue it has faced in years, the U.S. Supreme Court on Dec. 16 ruled that a long-term disability plan’s three-year statute of limitations on claims was “reasonable” and did not violate the Employee Retirement Income Security Act of 1974 (ERISA), which governs many employee benefits.

In 2005, a Walmart employee sought long-term disability benefits, but the Hartford insurance company denied her claim because she waited more than three years to file, as the plan’s terms specified. A district court dismissed the case, the 2nd Circuit affirmed the dismissal and now the Supreme Court has agreed.

The High Court declined to say how long a statute of limitations should be in ERISA cases—merely that the three years required in this case was “reasonable.” The case is Heimeshoff v. Hartford Life & Accident Insurance Co. (No. 12-729., U.S. Supreme Court, 2013).

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