3M decision first of its kind: Court says overfunded plansafe from participant suit; Appellate ruling seems at odds with ERISA.

Pensions & Investments, April, 2002 by Anand, Vineeta

ST. PAUL, Minn. -A federal appeals court has ruled participants and beneficiaries do not have the right to sue a sponsor of an overfunded pension plan for investment losses suffered by the plan. If the decision is upheld, experts said, it could weaken policing of pension funds. The decision in Carol Harley vs.

Minnesota Mining and Manufacturing Co. is the first of its kind. The 8th U.S. Circuit Court of Appeals in St. Paul stated the participants and beneficiaries of the pension plan had no constitutional right to sue because their ability to receive benefits had not been affected since the plan was overfunded. ``The limits on judicial power imposed by Article III (of the U.S. Constitution) counsel against permitting participants or beneficiaries who have...

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