Estate of Schwing v. The Lilly Health Plan, 2009 U.S. App. LEXIS 7871 (3d Cir. April 14, 2009)
Prior to the Supreme Court’s recent decision in Metropolitan Life Ins. Co. v. Glenn, 138 S.Ct. 2343 (2008), the Third Circuit held that courts deciding an ERISA plan participant’s appeal from the plan administrator’s denial of benefits should apply a “sliding scale” standard of review, in which the level of deference accorded the administrator’s decision would change depending on the presence of conflicts of interest affecting plan administration. In Schwing, the Third Circuit recognized that, in light of Glenn, this “sliding scale” approach is no longer valid. Instead, the Court announced a new standard of review, whereby courts should apply a deferential abuse of discretion standard of review across the board and consider any conflict of interest as one of several factors in considering whether the plan administrator abused its discretion.
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