Freedom and Fairness Restoration Act would simplify rules for qualified plans

Article Abstract:

US Sens. Armey and Shelby have introduced a tax reform proposal, the Freedom and Fairness Restoration Act of 1995, that would result in broad changes to the laws governing retirement plans. The proposal includes a flat tax on individuals and businesses of 20%. The changes to employee benefits law, many of which are highly advantageous to employers, include elimination of nondiscrimination tests, removal of some contribution limits and increased flexibility in terminating plans or transferring plan assets. Health and welfare benefits would become nondeductible to employers.

Political aspects, Tax reform

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Supreme Court overturns Curtiss-Wright Corp. v. Schoonejongen

Article Abstract:

The US Supreme Court reversed the US Court of Appeals for the Third Circuit in Curtiss-Wright Corp. v. Schoonejongen and found that termination of retirement medical benefits by Curtiss-Wright had satisfied Employee Retirement Income Security Act (ERISA) plan amendment requirements. The lower courts had ruled that the amendment procedures stated in the plan were not sufficient to allow the pan to be terminated. The Supreme Court remanded the case to determine whether amendment procedures were actually followed, once it was decided that the text of the plan was adequate.

Retirement benefits

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District court holds that participants must be permitted to "grow into" subsidized early retirement benefits triggered by involuntary separation

Article Abstract:

This article concerns the decision of the U.S. District Court for the Western District of Pennsylvania in Bellas v. CBS, Inc. where the court relied upon ERISA sections 204(g) and 502(a)(3)(B) in determining that an employer's benefit plan amendment eliminating a Separation Benefit was a breach of fiduciary duties. Administrators may not eliminate early retirement benefits for existing plan participants where plans are structured similarly to those in this case.

United States, Employee Benefits & Services, Human resource management, Employee benefits, Fiduciary duties, Early retirement

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