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Seventh Circuit Rules ERISA Does Not Preempt State Law Prohibiting Discretionary Clauses

Bloomberg BNA Tax and Accounting Center

November 12, 2015

Author: Edna S. Kersting

Edna Kersting (Partner-Chicago) and Brian Padove (Associate-Chicago) collaborated on a November 12, 2015, article for Bloomberg BNA’s Tax & Accounting Center entitled “Seventh Circuit Rules ERISA Does Not Preempt State Law Prohibiting Discretionary Clauses.” Edna and Brian discuss the Seventh Circuit’s affirmation of a U.S. District Court for the Northern District of Illinois decision holding that Illinois's anti-discretionary clause regulation prohibiting discretionary clauses in insured employee benefits plans offered or issued in Illinois was outside the scope of the preemption power of ERISA.

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