A plan covered by ERISA is afforded a plan comprehensive federal oversight (Federal law preempts state law). Federal law limits punitive and other types of damages against the plan and the plans fiduciaries.
For plans that are not covered by Title I of ERISA, they do not have the above distinction, therefore plan participants then have the right to sue for damages under applicable state law.
In exchange for protections afforded by Federal Law, Title I of ERISA also imposes fiduciary standards as well as reporting and disclosure conditions on benefit plans.
