Directed trustee not subject to ERISA liability as fiduciary or co-fiduciary
Article Abstract:
The US 1st Circuit Court of Appeals in Beddall v. State Street Bank and Trust Co. held that an independent investment manager's continual 10 year error in valuing real estate holdings of a defined contribution plan was enough to allow no fiduciary liability to attach to the bank plan trustee. The bank became suspicious of inappropriately high valuations and hired an independent appraiser who verified the suspicion. That undertaking did not cause the bank-directed trustee to acquire fiduciary liability.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Health benefits plan administrator is subject to lawsuit as plan fiduciary
Article Abstract:
Third party administrators can be held liable as plan fiduciaries under ERISA, according to a 1997 Ninth Circuit decision. The court ruled such administrators can be sued as unnamed fiduciaries if its actual duties fit the ERISA criteria for fiduciaries. Express service contract provisions did not necessarily exempt third party administrators, according to the court, which applied a four-factor test to determine liability.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Disproportionate investment of plan assets in residential mortgages not imprudent. Mortgage loans from bank under program established by pension trustees not subject to s. 72(p)
- Abstracts: In the limelight's glare; military lawyers plan counterattack in response to increased media coverage. Sign on the dotted screen: ABA takes lead in developing guidelines for electronic document verification
- Abstracts: Transitional losses: criteria for compensation. Trends in youth smoking: is there really a crisis? Banks, insurance companies, and mergers
- Abstracts: The constitutional committment to legislative adjudication in the early American tradition. Adjudication and its discontents: coherence and conciliation in federal Indian law
- Abstracts: Supreme Court broadens actions available under ERISA s. 510 to include both welfare and pension plans. part 2 Seventh Circuit holds that "parties in interest" are not liable to plans for participatiing in prohibited transactions