Practical HR Tips, News & Advice. Updated Daily.
There’s consternation about the future solvency of multiemployer plans and concerns about whether plan sponsors should expect higher insurance premiums as a result of three new reports from the Pension Benefit Guaranty Corp. On Jan. 29, PBGC sent to Congress reports on the status of multiemployer pension plans it insures, the current effects of pension […]
Plan sponsors may take heart at a district court’s ruling supporting the interpretation of plan language by one of their own — but a partial dissent could spell more claims for equitable relief. The 6th U.S. Circuit Court of Appeals reversed a ruling for the plaintiff in a surviving-spousal benefits suit and supported the defined […]
Court Fails to Find ERISA Breach Plan sponsors, especially those in the financial services industry, have some assurance about their right to invest in affiliated mutual funds and other assets for their retirement plans, based on a recent ruling by an appeals court. The 4th U.S. Circuit Court of Appeals on Jan. 14 upheld the […]
One way to afford the expense of providing financial training, says Liz Davidson, CEO of Financial Finesse, Inc. (www.financialfinesse.com) is to use your 401(k) plan’s ERISA account. This account is sometimes used to pay for plan expenses and sometimes refunded to participants. As long as the financial education is targeted toward retirement, using the ERISA […]
A victory by the health plan participant in US Airways v. McCutchen, now before the U.S. Supreme Court, may erode ERISA plans’ ability to enforce plan terms as written, a legal expert tells the blog. In McCutchen, the Court has a very difficult balancing act to answer whether: (1) an ERISA health plan administrator is entitled […]
A recent Illinois federal bankruptcy court ruling is an important reminder to ERISA plan fiduciaries that violations of fiduciary duties under ERISA can result in personal liability from which Chapter 7 bankruptcy proceedings cannot protect the fiduciary. The case is In re John Dombek III, No. 11-40894 (Bankr. N.D. Ill. Oct. 16, 2012); In re John […]
Plans face new a new erosion of their powers to recover the full amount of benefits paid in third-party recovery cases. Attorneys with Epstein Becker and Green discussed these and other trends in a Sept. 13 audio conference on benefit claim denial litigation. Plans Face Diminishing Ability to Recover The growing ability of plaintiffs to […]
A Connecticut-based fiduciary investment adviser agreed in a settlement to pay about $1.3 million to 13 pension plans to resolve alleged ERISA violations related to mutual fund fees the firm received. USI Advisors Inc. made investments in mutual funds on behalf of ERISA-covered defined benefit plan clients and received 12b-1 fees from those funds, according […]
Non-federal governmental plans may omit language describing how participants can seek remedies under ERISA in notices to be given when the plan makes an adverse decision. Notices of adverse benefit determinations are required as part of health reform’s claims appeal and external review rules. Such plans need not include the language because ERISA remedies are […]
A company owner and another manager are not fiduciaries as defined by ERISA and the contributions they failed to make to their employees’ pension plans were not plan assets, the 6th U.S. Circuit Court of Appeals ruled. This decision supports the premise that individual company officials who serve only as conduits for employees’ payments to […]