No separation from service for employees discharged by insurance company who are hired by independent contractor company agents
Article Abstract:
The IRS issued a private letter ruling that found that employees that were terminated by an insurance company and then proceeded to work for the independent insurance agents that they had been working with before had not been separated from service under qualified plan distribution rules. Distributions of benefits from a defined benefit plan or a 401(k) plan may not be made while the employee is still working for the employer. The IRS felt that the close contractual relationship between the insurance company and the agents and the continuity of work done rebutted claims of termination.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1995
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No ERISA violation if a defined benefit plan's normal retirement age is 67 rather than 65
Article Abstract:
The US Court of Appeals for the 10th Circuit ruled in Lindsay v. Thiokol Corp. that the defendant did not violate the Employee Retirement Income Security Act (ERISA) by providing defined benefit plan participants retiring at 65 with reduced benefits relative to those who retired at 67. The plan's normal retirement age was 67, and the Court found that benefit plans need not use retirement ages equal to the statutory retirement age of 65. The suit was brought in part because the employer discontinued its policy of subsidizing early retirements.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1997
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Technical violation of ERISA's procedural requirements for review of claim denial based on preexisting condition not enough to require condition's coverage
Article Abstract:
The US Northern District Court of Illinois ruled in Tormey v. General American Life Insurance Co. that the insurer's actions as a whole complied with ERISA's section 503 requirements. The section states claimants are entitled to timely and informative notice of a claim's denial so they have the opportunity for a full and fair review. In Tormey, the insurer's deficiency in its original notice was overcome by its later proper actions. The 1996 Health Insurance Portability and Accountability Act may render this issue moot.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1997
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- Abstracts: Remedial actions limit an employer's liability; corrective action can absolve a company of a supervisor's harassment in many circuits
- Abstracts: Valuation of recovery - partially performed discharged contracts. Metcalfe v NZI Securities Australia Ltd
- Abstracts: Directors and officers insurance proceeds in bankruptcy: the impact on an estate and its claimants
- Abstracts: Discovery in employment arbitration. Resolving sexual harassment disputes in the workplace: the central role of mediation in an employment contract
- Abstracts: The 8th Circuit's invalidation of Justice Department rules on ex parte contacts with employees of a company under investigation has raised other questions