Westlaw Today Publishes Article by Seong Kim and Takai Gillam on ERISA Discretion and Plan Interpretation

Westlaw Today featured an article by Seong Kim and Takai Gillam titled “Third Circuit clarifies that discretion requires meaningful plan interpretation.” The piece, published on April 2, 2026, examines a recent Third Circuit decision addressing the limits of discretionary authority under ERISA.

The article analyzes the Third Circuit’s ruling that ERISA plan fiduciaries may not suspend pension benefits without first engaging in a reasoned interpretation of the plan language and documenting that reasoning in the administrative record. The authors highlight the court’s emphasis on procedural sufficiency, transparency, and the risks associated with relying on undefined or industry‑specific plan terms.

Kim and Gillam explain the court’s reasoning, noting:

“The court held that discretionary authority is not self‑executing; the fiduciary must actually interpret the plan language for deference to apply. Because the administrator did not meaningfully interpret the plan language, the court concluded that the plan’s decision lacked a reasoned basis and could not receive deference.”

The full article is available here.