Party in Interest

Glossary

This term has multiple meanings. In the context of:

Bankruptcy, a party to a matter in a bankruptcy case with standing to be heard in court. In most bankruptcy cases, parties in interest include the debtor, creditors and US Trustee.
An employee benefit plan under the Employee Retirement Income Security Act of 1974, party in interest includes:
- plan fiduciaries (including administrators, officers, trustees and custodians), counsel and employees of the plan;
- persons providing services to a plan;
- employers or employee organizations whose employees or members are covered by the plan, or their owners with 50% or more interest;
- corporations, partnerships, trusts and estates of which 50% or more is owned by certain parties in interest;
- employees, officers, directors or 10% shareholders, partners or joint venture partners of certain parties in interest or of the plan; and
- certain relatives of parties in interest, including spouses, ancestors, lineal descendants or spouses of lineal descendants.

(ERISA § 3(14).)

Party in Interest | Practical Law