Could listing designated beneficiaries on a participant statement spark a fiduciary breach lawsuit? In today’s world, the answer is always yes — and in LeBoeuf v. Entergy, it did.
This case involved Alvin Martinez, a longtime Entergy employee who remarried but never updated his 401(k) beneficiary form. Despite receiving quarterly statements listing his children as beneficiaries, the plan correctly distributed his $3 million account to his second wife after his death, per ERISA rules (no spousal waiver = spouse gets it).
The children sued, arguing the statements were misleading. The district court dismissed it. The Fifth Circuit affirmed. Why? Because:
· Plan documents and SPDs clearly said remarriage voids prior beneficiary designations;
· No one inquired about the rule — and fiduciaries aren’t liable for participant confusion absent a question;
· Entergy and T. Rowe Price weren’t acting as fiduciaries in just issuing statements.
Bottom line: Printing a name on a statement isn’t a fiduciary act. But it still took years of litigation to prove that.
Let this be a reminder: Participants need to know the rules — and update their forms. Spouses matter. Waivers matter. And if you’re a plan fiduciary, disclosure matters most of all.
