Stop ERISA from being misused
On July 6th, I read an article about ERISA. A young man, age 30, was employed by Spherion Corp. He was concerned about taking care of his wife after he was gone.
Upon his death, she found she would only get back the premiums paid and not the $426,000 in benefits she was due.
After going to court and having her case thrown out, she was told employers have been using ERISA as a shield against lawsuits.
For people who don't know what ERISA stands for, it is Employee Retirement Income Security Act.
Designed to protect employee benefits, the law has been used by employers as a shield against lawsuits.
Congress could amend ERISA to make clear such lawsuits are allowed, but has taken no action.
Before ERISA became law, employees could sue for benefits in state courts.
Spherion Corp. switched insurance companies after Mr. Amschwand was diagnosed with cancer.
The new policy didn't take effect until the employee worked one full day.
He was never informed of this requirement even though he asked several times if there was anything else he had to do to ensure his wife would get his death benefit.
He was told "no" every time he asked. He also asked to have a copy of the new policy sent to him, but Spherion never did so.
Mr. Amschwand died and never returned to work one full day.
Is this the American Way? Why do our courts listen to and rule over frivolous lawsuits and then throw out a legitimate claim?
Does Mr. Amschwand's widow have any recourse? This is a tragedy.
Laurel Anderson
Wheeling