Mealey's Labor & Employment - Participant Seeks Reconsideration Of Ruling That Plan Assets Can Pay Judgment

CHICAGO - Following an Illinois federal judge's ruling that using a profit-sharing plan's assets to satisfy a judgment against the plan for violations of the Racketeer Influenced and Corrupt Organizations Act would not violate the exclusive benefit rule, fiduciary duty requirements or prohibited transaction rules of the Employee Retirement Income Security Act, a plan participant on May 9 filed a motion for reconsideration, seeking a ruling exempting her plan assets from being subject to satisfaction of the outstanding judgment pursuant to ERISA's anti-alienation provisions (David R. Gray, Jr. v. Phoenix Bond & Indemnity Co., et al., No. 12 C 6281, N.D. Ill.; 2014 U.S. Dist. LEXIS 58171).

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