Neither ERISA's anti-alienation provisions not QDRO rules apply to welfare benefit plans

Article Abstract:

The US Court of Appeals for the Eighth Circuit ruled in Equitable Life Assurance Society of the United States v. Crysler that a divorce decree did not need to be a qualified domestic relations order to affect beneficiary designation for a welfare benefit plan because ERISA's limitations on alienation do not apply to such plans. In an interpleader action, a widow and a former wife both claimed to be due life insurance proceeds from an employer plan. The Eighth Circuit found that a divorce decree granting the benefits to the former wife did not need to be qualified under ERISA.

Life insurance, Beneficiaries

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Proceeds of a settlement from an ERISA lawsuit are taxable

Article Abstract:

The US 8th Circuit Court of Appeals in Mayberry v. United States held that awards to class action plaintiffs in an ERISA violation suit were includable in the income of those individual plaintiffs. The court held that since ERISA section 502(a)(3) does not recognize suits for personal injuries, awards cannot be excludable from income under IRC section 104(a)(2). This issue has not received uniform judicial treatment and will likely be resolved by the US Supreme Court.

Tax Law, Public Finance Activities, Taxation, Compromise and settlement, Settlements (Law)

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Plan administrator abused discretion in denying benefits based upon erroneous finding

Article Abstract:

This article concerns the case of Crow v. Fortis Benefits Insurance Co. where the U.S. District Court for the Eastern District of Missouri found that a employee benefits plan administrator abused its discretion by denying long-term disability benefits to a plan participant when the denial was based upon erroneous evidence determined by a benefits appeals committee.

United States

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