Withdrawing from pension plans may carry costly consequences

Article Abstract:

The Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) was enacted to ensure that employers paid the proper amount to union multi-employer pension funds. A controversial aspect of this law is the provision for 'withdrawal liability', which requires employers to contribute to a pension fund that is in financial trouble, even when the employer's obligation to contribute to a pension plan has already been fulfilled. The Federal government contends that the MPPAA was a needed step to avoid a pension fund emergency, and employers counter that the MPPAA takes property from them without fair compensation. Contributing employers cannot adjust benefit levels or create investment intentions because of the relative autonomy of the plan trustees, yet employers are required to pay for trustee decisions. Employers have only 60 days to appeal any withdrawal liability assessment made by the pension fund trustees; the procedure is complicated and the burden of proof is on the employer to prove that the trustees are being unreasonable. The legal and economic ramifications of the MPPAA, as well as possible changes in the law, are described in detail.

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Employees under the influence - outside the law?

Article Abstract:

Several court cases related to drugs in the workplace and drug-testing of employees are discussed; among the concepts examined are: 'state action', the constitutional constraints of public versus private sector employers; the employee's right to privacy and protection from unreasonable searches; defamation and termination of employees due to drug abuse, and the legality of various types of drug testing by employers - drug screening, searching for drugs and using undercover agents to detect drug abuse. Also discussed are the legal aspects of pre-employment drug testing and employee assistance programs designed to help employees 'kick the habit'. Despite the number of court cases included in the discussion, the main problem in this area of personnel management is the lack of established judicial precedents.

Innovations, Employee alcoholism, Labor law, Employee drug abuse

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Why you can't afford to ignore ERISA

Article Abstract:

The Employee Retirement Income Security Act (ERISA), intended to abolish unfair restrictions on pension plans offered by employers, has in practice affected employee counseling, employee benefit administration, employee terminations and business sales and purchases. Other legal ramifications of ERISA include: reporting requirements, fiduciary requirements, the tax treatment of qualifying plans, and regulations regarding benefit accrual, participation and termination, insurance as to benefits, and funding. These legal aspects are discussed in detail, as are ERISA's effect on corporate mergers and acquisitions and what plans are exclude from coverage by the legislation.

Planning, Pensions, Retirement income

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