who have signed and funded revocable trusts have a decreased need for financial
powers of attorney because the Trust has within it a mechanism to change the
Trustee (manager) of the Trust on the death, resignation or incapacity of the
Creator of the Trust. But IRAs (and
other retirement plans...
plans governed by ERISA must be established and maintained under written
agreements authorizing fiduciaries to control and manage the plan's operation
and administration. ERISA generally considers an entity a fiduciary to the
extent that it holds discretionary authority or responsibility...
Business owners face a number of regulatory and compliance
requirements that add to the difficulty of operating a profitable
business. Although these requirements do not necessarily contribute to
the bottom line, to ignore them or, equally as bad, not be aware of
them, puts the business in as much...
By MARK S. THOMAS & ROBERT W. SHAW
The U.S. Court of Appeals for the Seventh Circuit has
issued another important decision in favor of plans and plan
administrators in a case involving allegations of excessive fees and
expenses. In Loomis, et al. v. Exelon Corporation, et al. , Nos.
By Pamela L. Signorello, Kim S. Orbeck, Terrence R. McInnis and Cathy A. Simon,
On October 19, 2011, the U.S. Court of
Appeals for the Second Circuit affirmed the dismissal of two putative
class actions alleging that ERISA fiduciaries breached their duties to
plan participants by imprudently continuing...
BY: CATHERINE M. MARRIOTT
The Commissioner of the Internal Revenue has adjusted the dollar limitations for benefits and contributions that apply to retirement plans. The Social Security Administration has also adjusted the Social Security earnings limit. The change in the 2012 limits was triggered...
Myers and Mark Smith On October 25, 2011, the Department of Labor (DOL) published its final regulation implementing the ERISA prohibited transaction exemptions for participant investment advice enacted in the Pension Protection Act of 2006 (PPA). This final regulation brings to a conclusion...
By Jonathan A. Kenter and Gail H. Cutler
In the latest of a series of high-profile class action suits against large 401(k) plans, ABB, Inc., a North Carolina power generation products manufacturer, and its 401(k) plan committees, were held jointly and severally liable, for a record $37 million in damages...
BY: MARK S. THOMAS & ROBERT W. SHAW
In Lanfear v. Home Depot, Inc. , No. 10-13002 (11th Cir. May 8, 2012) [ enhanced version available to lexis.com subscribers ], the U.S. Court of Appeals for the Eleventh Circuit joined five other federal circuit courts in adopting a presumption that, in the absence...
By Brian M. Pinheiro and Kurt R. Anderson
Employers that sponsor section 401(k), 403(b), and other types of retirement plans rely on third parties to conduct the day-to-day administrative functions of these plans. Investment managers, record-keepers, consultants, and other third parties all provide...
ERISA and CFR Provisions : Under 29 U.S.C. § 1054(b)(4)(B) , ERISA Section 204(b)(4)(B), 29 C.F.R. § 2530.204-2(c)(1) , employees who are credited with at least 1,000 hours of service in a plan year must receive at least a ratable portion of the accrued benefit to which they are entitled if...
By Brian M. Pinheiro
In the wake of Hurricane Sandy, the IRS has issued guidance that permits individuals affected by the storm and its aftermath to access the assets in their retirement plans and individual retirement accounts. To be eligible for the special relief, the employee or former employee...