EBIA Weekly Archives - 401(k)

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  1. Court Rejects ERISA Section 510 Interference Claim Because Employee Was Not Entitled to Plan Benefits
    From the June 25, 2009 EBIA Weekly
    After announcing his intent to pursue another career, the employee in this case agreed to postpone his departure to help transition his job duties to his replacement. On learning who would replace him, though, the employee made disparaging remarks about ...
    [Pendleton v. QuikTrip Corp., 2009 WL 1577172 (8th Cir. 2009)]
  2. Plans That Failed to Follow Their Own Procedures Must Pay Spouse Amounts Already Paid to Children
    From the June 18, 2009 EBIA Weekly
    The two 401(k) plans in this case made plan distributions to a deceased participant’s children even after receiving notice that an individual claiming to be the participant’s common-law spouse had started a court proceeding ...
    [Smith v. New Mexico Coal 401(k) Personal Savings Plan, 2009 WL 1598454 (10th Cir. 2009)]
  3. Can a plan limit the time a participant or beneficiary has to file a lawsuit after losing an appeal under the plan's claims procedures?
    From the June 18, 2009 EBIA Weekly
    QUESTION: Can our welfare and 401(k) plans impose a one-year deadline for participants or beneficiaries to file a lawsuit if they wish to challenge a final administrative determination under our plans’ claims procedures? ANSWER: Yes, your plans ...
  4. Court Denies Penalties for Document-Request Failure When Participant Not Harmed
    From the June 18, 2009 EBIA Weekly
    The participant in this lawsuit, which included a claim for severance benefits, sought ERISA penalties for the employer’s alleged failure to timely provide plan documents that she had requested. The participant claimed that the plan failed to respond ...
    [Nair v. Pfizer, Inc., 2009 WL 1635380 (D.N.J. 2009)]
  5. Plan Provision Relieving Trustee of Duty to Monitor and Collect Contributions Is Void as Against Public Policy
    From the June 11, 2009 EBIA Weekly
    The DOL, in this case, asked the court to declare that a plan provision relieving the trustee of any duty to monitor or collect required employer contributions was void as against public policy under ERISA Section 410 (which voids any ...
    [Solis v. Plan Benefit Services, Inc., 2009 WL 799092 (D. Mass. 2009) ]
  6. Administrator Breached Fiduciary Duties by Loaning Plan Funds to Start-Up Company
    From the June 11, 2009 EBIA Weekly
    This fiduciary breach case involved a series of loans made with plan funds from an ERISA welfare benefit trust to a start-up company. The loans were recommended as plan investments by an investment advisor, who indicated to the plan ...
    [De Costa v. Rodrigues, 2009 WL 1489637 (9th Cir. 2009) ]
  7. Are we required to amend our 401(k) plan this year if we have waived 2009 required minimum distributions?
    From the June 04, 2009 EBIA Weekly
    QUESTION: We have waived the required minimum distributions for 2009 under our 401(k) plan. Does the waiver of these distributions for 2009 require a plan amendment and, if so, when is the deadline for that amendment? ANSWER: The answer ...
  8. DOL Delays Final Investment Advice Regulations for an Additional 180 Days to Allow More Time for Legal and Policy Review
    From the May 21, 2009 EBIA Weekly
    The DOL has delayed for an additional 180 days the effective and applicability date of its final regulations regarding investment advice for participants and beneficiaries of individual account plans (including 401(k) plans). The regulations, originally scheduled to be effective ...
    [Investment Advice—Participants and Beneficiaries, Final Rule; Delay of Effective Date and Applicability Date, 74 Fed. Reg. 23951 (May 22, 2009)]
  9. IRS Permits Plans to Suspend or Reduce Safe Harbor Nonelective Contributions if Sponsor Has Substantial Business Hardship
    From the May 21, 2009 EBIA Weekly
    The IRS has proposed amendments to the safe harbor plan regulations under Code Sections 401(k) and 401(m), permitting safe harbor plans to suspend or reduce safe harbor nonelective contributions during the plan year if the plan sponsor incurs ...
    [Prop. Treas. Reg. Secs. 1.401(k)-3 and 1.401(m)-3, 74 Fed. Reg. 23134 (May 18, 2009)]
  10. First Circuit Refines Its Standard of Review Analysis Based on Supreme Court's Glenn Decision
    From the May 21, 2009 EBIA Weekly
    The First Circuit has reviewed its analysis of the standard of review applicable in ERISA benefits litigation and found the need for only modest refinements in light of the U.S. Supreme Court’s Glenn decision. As background, the ...
    [Denmark v. Liberty Life Assurance Co. of Boston, 2009 WL 1219438 (1st Cir. 2009)]

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