Document ID: ./input/supremecourt_opinions/opinions/19pdf/17-1712_0971.pdf
Page Number: 35

22 

THOLE v. U. S. BANK N. A. 

SOTOMAYOR, J., dissenting 

Achieve  Greater  Progress  on  High-Risk  Areas  (GAO–19–
157SP,  2019)  (GAO  High-Risk  Report).    Noting  the  insol-
vency of defined-benefit plans that the PBGC insures and 
the  “significant  financial  risk  and  governance  challenges
that  the  PBGC  faces,”  the  GAO  High-Risk  Report  warns 
that “the retirement benefits of millions of American work-
ers  and  retirees  could  be  at  risk  of  dramatic  reductions” 
within four years.  Id., at 56–57.  At last count, the PBGC’s 
“net  accumulated  financial  deficit”  was  “over  $51  billion” 
and its “exposure to potential future losses for underfunded 
plans” was “nearly $185 billion.”  Id., at 267.  Notably, the
GAO had issued these warnings before the current financial 
crisis struck.  Exchanging ERISA’s fiduciary duties for Gov-
ernment  insurance  would  only  add  to  the  PBGC’s  plight 
and require taxpayers to bail out pension plans. 

IV 

It  is  hard  to  overstate  the  harmful  consequences  of  the 
Court’s conclusion.  With ERISA, “the crucible of congres-
sional concern was misuse and mismanagement of plan as-
sets  by  plan  administrators.”  Russell,  473  U. S.,  at  141, 
n. 8.  In imposing fiduciary duties and providing a private 
right of action, Congress “designed” the statute “to prevent
these abuses in the future.”  Ibid.  Yet today’s outcome en-
courages the very mischief ERISA meant to end. 

After  today’s  decision,  about  35  million  people  with  de-
fined-benefit plans11 will be vulnerable to fiduciary miscon-
duct.  The  Court’s  reasoning  allows  fiduciaries  to  misuse 
pension funds so long as the employer has a strong enough
balance  sheet  during  (or,  as  alleged  here,  because  of )  the 
misbehavior.  Indeed, the Court holds that the Constitution 

—————— 

11 See  Dept.  of  Labor,  Private  Pension  Plan  Bulletin  Historical 
Tables  and  Graphs,  1975–2017 
(Table  E4),
https: / /www.dol.gov / sites / dolgov / files / EBSA / researchers / statistics / 
retirement - bulletins / private - pension - plan - bulletin - historical - tables -
and - graphs.pdf. 

(Sept.  2019)