What standards are applied in regard to judicial review of ERISA decisions by plan administrators?
When a plan gives the administrator discretionary authority to determine eligibility for benefits or to interpret the plan, a court will not overturn an administrator's decision unless there has been an abuse of discretion. In contrast, if the plan is silent or does not give the administrator discretionary authority to determine eligibility, then a court will conduct a de novo review of the decision and not give deference to the administrator's decisions. If a benefit plan gives discretion to an administrator who is operating under a conflict of interest, however, then the court will weigh the conflict as a factor in determining whether there has been an abuse of discretion.
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