Avoid lawsuits: get changes to your plan right the first time
Article Abstract:
Two lawsuits illustrating the correct and incorrect procedures in initiating changes in ERISA employee benefit plans are discussed. The first case, Schoonejongen vs. Curtiss-Wright, shows the incorrect procedure while the second case, Siskind vs. Sperry Retirement Program, illustrates the right approach to changing benefit plans. Pension planners considering changes in benefits should establish a document outlining the changes allowed under ERISA. The document should indicate who is authorized to make changes and discuss the proposed changes.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
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Are you acting as a fiduciary?
Article Abstract:
Pension plan sponsors should take care that they do not take on fiduciary responsibilities in the course of fulfilling their duties as plan administrators. Fiduciaries are defined as those that have some control over the asset disposition and are subject to standards of conduct under the Employee Retirement Income Security Act of 1974, which imposes civil and criminal penalties for breaches. Court rulings have clarified cases of fiduciary responsibility of administrators and plan board members.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
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Plan sponsors can limit fiduciary responsibilities
Article Abstract:
The appointment of a corporate trustee vested with full investment powers limits the fiduciary liabilities of a pension plan sponsor to the management. The performance of the trustee, however, has to be evaluated to make sure the trustee is performing in compliance with ERISA and the pension plan. Fiduciary liability insurance is essential as security against possible personal liability.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
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