Companies love fed law they think helps them & leaves heirs penniless

[IDrinkaRum]

http://biz.yahoo.com/ap/080705/benefit_battles.html

Not sure exactly what the law says, but large companies are using the ERISA law to deny families of deceased employees their rightful benefits, and if the family sues, the companies use the law to get the suits thrown out of court & the family can only collect either the insurance premiums or, if the benes had been tied up in legal ramifications and they decline, you can only get what the benes are worth at the time the company decides to give them to the heirs.

The Bush administration has said the lower courts have misread the law & asked the Supreme Court to rule on it. They have refused. The current Congress can also rework the law, but have done absolutly nothing also.

[ThePhoneGoddess]

I am curious as to the reason the Supreme Court has refused to rule on it. The current administration has a proven track record of attempting to 'interpret' various laws in ways that the courts don't agree with. (The Guantanamo rulings being a prime example.)

I think it's funny that the Administration is blaming the lower courts for misinterpreting it. That's the whole point of the court, to interpret the laws and make rulings based on that! If the courts are consistently misinterpreting this law, then Congress needs to rewrite the law in better language so it is easier to understand.

[tropicsgoddess]

What I don't get was why didn't Sperion tell their employee (who died of cancer)that they switched companies and inform him of the requirements to make it effective?! They didn't even bother to waive the one day of work provision to make the policy effective for the guy, but didn't. The only reason why companies like this is so that they don't have to pony up enormous amounts of cash for the deceased employee's family.

[IDrinkaRum]

TPG - the article pointed out that Congress has not done anything about the language in the law either. I don't understand it. Are they not interested in helping out fellow Americans in their time of need, are they afraid President Bush would veto the law, or are they waiting until November 2008 to see who becomes President to start worrying about writing a new and improved law with better wording?