H.R. 6084 — ERISA Litigation Reform Act

This section amends section 502 of ERISA (29 U.S.C. 1132), which authorizes civil actions by participants, beneficiaries, fiduciaries, the Secretary of Labor, and others to enforce plan terms and fiduciary duties under employee benefit plans, by adding new subsections (n), (o), and (p). (1) Subsection (n) requires plaintiffs alleging that a fiduciary caused a plan to engage in a prohibited transaction with a party in interest under ERISA section 406(a)(1)(C) or (D) (i.e., furnishing goods/services or transferring plan assets) to plausibly allege and prove that the transaction is not exempt under section 408(b)(2) (i.e., reasonable compensation for services). (2) Subsection (o) requires plaintiffs alleging a fiduciary violation of ERISA section 406 regarding the purchase or sale of qualified employer securities to plausibly allege and prove that the transaction is not exempt under section 408(e). (3) Subsection (p) stays all discovery and proceedings during the pendency of a motion under Federal Rule of Civil Procedure 12 or a reply to an answer under Rule 7(a)(7), unless particularized discovery is necessary to preserve evidence or prevent undue prejudice; imposes document preservation obligations on parties with actual knowledge of the complaint's allegations (extending to plan custodians); authorizes sanctions for willful noncompliance; and permits federal courts to stay discovery in related state court actions.