Supreme Court allows amendment of overfunded contributory defined benefit plan

Article Abstract:

The Supreme Court has ruled that employers do not violate the Employee Retirement Income Security Act (ERISA) when contributory defined benefit plans are amended by introducing a new noncontributory benefit structure designed to use $1 billion in surplus accumulated in the plan. The High Court stood by its previous decisions that employers do not act as fiduciary agents when they amend employee benefit plans. ERISA's anti-inurement and vesting provisions are not violated because employees are entitled only to their accrued benefits under a defined benefit plan where employers normally assumes the risk.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Insurance Regulation, Pension funds, Insurance law

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Employer must notify participants of reduction in future benefit accrual

Article Abstract:

The US Court of Appeals ruled that an employer violates the ERISA if he does not inform benefit plan participants of amendments that would decrease expected benefits from the plan. Benefit planners must communicate any changes in the plan to its holders to satisfy ERISA regulations. They must also inform plan holders of any event that may affect the status of their benefit plan.

Employers

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Today's retirement plan environment leaves much for concern

Article Abstract:

The need for organizations to be aware of the importance of internal control and self-audit procedures regarding their pension and benefit plans is discussed.

Strategy & planning, Capital funds & cash flow, Planning, Accounting and auditing, Associations, institutions, etc., Company business planning, Organizations

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