ERISA Litigation Reform Act

This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to strengthen pleading standards and impose a stay of discovery in certain civil actions against fiduciaries or plans. Sec. 2, Pleading standard: For civil actions alleging a fiduciary caused a plan to engage in a prohibited transaction under ERISA section 406(a)(1)(C) or (D), the plaintiff must plausibly allege and prove the transaction is not exempt under section 408(b)(2). For actions alleging a fiduciary caused a plan to violate section 406 regarding the purchase or sale of qualified employer securities, the plaintiff must plausibly allege and prove the transaction is not exempt under section 408(e). For any civil action against a plan or its fiduciaries, all discovery and proceedings are stayed during the pendency of a motion under Rule 12 of the Federal Rules of Civil Procedure or a reply under Rule 7(a)(7), unless the court finds particularized discovery is necessary to preserve evidence or prevent undue prejudice. During the stay, parties with actual knowledge of the allegations must treat relevant documents, data compilations, and tangible objects as if subject to a continuing request for production, with preservation obligations extending to custodians in the plan's or party's control. A party aggrieved by willful failure to comply may seek sanctions. A court may also stay discovery in state court actions as necessary to aid its jurisdiction or protect its judgments.