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Many small-business owners both administer and participate in pension plans covered by the Employee Retirement and Income Security Act (ERISA). But the courts have been split as to whether business owners qualify as participants under ERISA and are entitled to the same legal protections as employees, including protection from creditors in the event of bankruptcy. […]
A new Ninth Circuit Court of Appeal ruling highlights recordkeeping requirements for employee benefit plans under ERISA, the federal law regulating benefit plans, and the con-sequences for employers who don’t follow these rules.
Over the last several years, many employers have converted their traditional pension plans to cash balance plans. But according to two recent federal court decisions, these cash balance arrangements may violate the Employee Retirement Income Security Act, (ERISA), the federal law regulating employee benefits.
A new federal court case involves an all-too-familiar scenario. An employer acquired a new business and had to terminate the old workforce. The employer, however, needed to keep some workers around for a few months, so it offered them a severance deal. But when the employer later tried to change the severance terms, it found […]
When Professional Risk Management acquired Applied Risk Management, the companies’ agreement provided for all active Applied employees to automatically be transferred to Professional without a break in health benefits coverage. But workers on medical, disability or other extended leave weren’t transferred until they returned to active duty, and they consequently lost health coverage until they […]
Neil Bergt was president and chairman of the board of directors for the airline MarkAir. He participated in the company-sponsored profit-sharing plan and an employee stock ownership plan. The company then created an ERISA retirement plan that allowed employees who were pilots or former pilots to participate.
Several years ago, the California Workers’ Compensation Appeals Board ruled that it’s illegal to terminate an injured worker’s health benefits unless you can show a legitimate business reason for doing so. But now the board has ruled that you can cut off health benefits for an employee out on workers’ comp leave so long as […]
The Department of Labor has released new regulations that will require you to revise your summary plan descriptions (SPDs) for pension and welfare benefit plans so they are more detailed than ever. Here’s a look at the information that must be included under the new rules.
When modifying a retirement plan or implementing an early retirement incentive program, most employers don’t announce the news until the details are finalized and the program is set to go. Now an important case from the Ninth Circuit Court of Appeals details when you have to give employees advance notice of a new program or […]
The U.S. Department of Labor’s Pension and Welfare Benefits Administration (PWBA) has just released its new enforcement strategy to ensure that pension plans comply with ERISA. The main target: defined contribution programs, particularly 401(k) plans. This means you could be hit with hefty penalties for pension plan administration errors, such as delinquent employee contributions and […]