There has been widespread confusion about applying the varying statutes of limitations imposed by the Employee Retirement Income Security Act of 1974 since its enactment. Recent court cases have aimed to clarify how a claim fits into one of the existing time limits.
Claims With Six-Year Statutes of Limitations
In general, a claimant has six years to file a claim. This stature of limitations applies when there is no knowledge of the error or omission in question.
The six-year period begins either when the breach occurs or, in the case of an omission, the last date it could have been corrected. If fraud is discovered, a claim can be made up to six years from the discovery of that fraud.
Claims That Must Be Filed in Three Years
If an employee has actual knowledge of a breach, he has three years from that breach to file an ERISA claim. However, the definition of “actual knowledge” has been widely disputed. A 2020 ruling by the U.S. Supreme Court narrowed the definition, in effect extending the statute of limitations for ERISA cases for many plaintiffs.
Recent court cases have attempted to clarify rules about how to apply the correct statute of limitations for ERISA cases. Understanding each classification helps both fiduciaries and claimants make appropriate decisions about possible liability.