401(k) plan that covered employees of multiple unrelated employers was not single “multiple employer” plan

A 401(k) plan that covered employees of multiple unrelated employers was not a single “multiple employer” plan for purposes of ERISA, according to an EBSA advisory opinion letter. Instead, the plan was an arrangement under which each participating employer established and maintained a separate employee benefit plan for its employees. EBSA determined that the plan […]

Spencer’s Benefits Reports NetNews – June 15, 2012

About this Newsletter The Spencer’s Benefits Reports is a summary of the week’s news items posted in the WHAT’S NEW pages of Spencer’s Benefits Reports Online. For questions regarding this email service, contact Customer Service at (800)449-9525. NetNews Subscription Want to receive these Newsletters via E-mail? Sign Up / Unsubscribe hr.cch.com Resources Online Store Customer […]

Elimination of early retirement subsidy barred under plan’s definition of accrued benefit

A plan amendment that eliminated a monthly early retirement supplement violated ERISA’s anti-cutback rule because the plan language specifically included the supplement in its definition of accrued benefit, the U.S. Court of Appeals in Richmond (CA-4) has ruled. Accrued benefit definition A pension plan defined “accrued benefit” to be a retiree’s pension, less a defined […]

Presumption of prudence continues to shield fiduciaries from liability following drop in value of employer stock

Plan fiduciaries did not breach their ERISA duties by retaining company stock as an investment option, despite a significant drop in the value of the stock price, the U.S. Court of Appeals in New York (CA-2) has ruled. The mere decline in the value of the company’s stock price did not indicate that the company […]

Employers and business groups urge Congress to adopt pension funding relief

Over 200 employers and trade associations, representing thousands of pension plans covering millions of employers, have signed a letter urging Congress to enact legislation to stabilize the pension funding interest rate rules. Similar actions have been urged by Mercer and by the American Society of Pension Professionals & Actuaries (ASPPA). House-Senate conference On March 14, […]

Foreign participants could not recover taxes from their employer/plan service providers that were wrongfully withheld from their benefits

Retired employees, who had never worked or resided in the United States but whose plan benefits were reduced by withholding for U.S. taxes, could not recover monetary damages from their employer, plan administrators, and other plan service providers because Code Sec. 7422 prohibits lawsuits to obtain tax refunds from private tax collectors before filing for […]

Pension & Benefits NetNews – June 12, 2012

NetNews Subscription Want to receive these Newsletters via E-mail? Sign Up / Unsubscribe hr.cch.com Resources Online Store Customer Service Home Page Products & Training News & Information About Links in this Newsletter To access the IntelliConnect™ full text documents you must be a subscriber to the Pension Plan Guide or Employment Benefits Management. Links within […]

Retirees’ post-Amara bid for equitable relief to remedy misleading SPD fails

Retirees who said their pension plan’s summary plan description (SPD) misstated what their actual benefit would be under the terms of the plan were not entitled under ERISA §502(a)(3) to recover using the equitable remedies of reformation or surcharge, the U.S. Court of Appeals in San Francisco (CA-9) has ruled. Ambiguous SPD The SPD contained […]

Spencer’s Benefits Reports NetNews – June 8, 2012

About this Newsletter The Spencer’s Benefits Reports is a summary of the week’s news items posted in the WHAT’S NEW pages of Spencer’s Benefits Reports Online. For questions regarding this email service, contact Customer Service at (800)449-9525. NetNews Subscription Want to receive these Newsletters via E-mail? Sign Up / Unsubscribe hr.cch.com Resources Online Store Customer […]

EBSA reopens comment period on proposed regulations to enhance target date fund disclosures

The Employee Benefits Security Administration (EBSA) has announced that it is reopening the period for public comments on its proposed regulations designed to improve the information that is disclosed to participants and beneficiaries concerning investments in target date or similar funds (TDFs). Written comments on the proposed regulations are due no later than July 9, […]