Administrator abused discretion in paying benefits to non-spouse solely on participant's statement that spouse could not be located

Article Abstract:

A federal court held in Lester v Reagan Equipment Co Profit Sharing Plan & Employee Savings Plan that a pension plan administrator had breached his fiduciary duty to protect a spouse's interest in a plan and abused his discretion in accepting without independent investigations a participant's notarized letter that his wife could not be located. After receiving the notarized letter the administrator had followed the plaintiff's wishes to pay benefits to him, his estate and his offspring from another marriage. After the participant's death, the wife sued for her share of the benefits.

Administrative discretion

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Executive of defunct company is fiduciary with respect to amounts company failed to contribute to welfare fund

Article Abstract:

A US district court for the Eastern District of Pennsylvania found in PMTA-ILA Containerization Fund v. Rose that the president of a company that made contributions to a pension and welfare fund was a fiduciary and was personally liable for funds not paid to the plan. The fund was collectively bargained for and certain amounts had accrued to the fund. The president used the amounts to pay bills pursuant to the company's liquidation. Because he had control over the funds, he was considered a fiduciary, meaning his duty was to the participants and beneficiaries.

Executives

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Pension plan administrator abused its discretion in refusing to waive 30-day period for J&S election

Article Abstract:

Pension plan administrators and fiduciaries may be abusing their discretion if they refuse to waive joint and survivor annuity election notice requirements, according to a 1997 federal district court decision. Plan fiduciaries should have written claims review and processing procedures to follow in reviewing annuity elections and similar situations. These fiduciaries have a duty to communicate claims determination standards and denial criteria to participants.

Annuities, Survivors' benefits

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