Benefits cut deemed a bias; Termination during asset sale violated ERISA, court rules.(News)(termination of benefits while on leave, Employee Retirement Income Security Act)

Business Insurance, October, 2002 by Roberts, Sally

Byline: SALLY ROBERTS SAN FRANCISCO-An employer that terminated the medical benefits of an employee on extended disability leave as part of an asset sale violated the Employment Retirement Income Security Act, an appeals court has ruled. In reversing and remanding a lower court's decision, a three-judge panel of the 9th U.S.

Circuit Court of Appeals ruled in Denice Lessard vs. Applied Risk Management et al. that the 1999 asset sale agreement between Professional Risk Management and Applied Risk Management Inc. discriminated against employees on disability and medical leave, thereby violating Section 510 of ERISA. Section 510 prohibits any action that might cut off or interfere with a participant's ability to collect present or future benefits or that punish...

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