ERISA & Employee Benefits

Suggested Administrative Practices in Light of Intel Decision - Ensuring "Actual Knowledge"

by Stephen Wilkes and Livia Aber

Advisors: Time to Finish What was Started….ERISA and Fiduciary Process Have Evolved…Have You?

Over 46 years ago, the Employee Retirement Income Security Act (“ERISA”) was passed overwhelmingly in the House of Representatives by a 376-4 vote.  Congress passed ERISA to empower American workers toward retirement security.  Fast forward, on May 23, 2019, the House of Representatives overwhelmingly passed the Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”) by a vote of ...

Supreme Court's Actual Knowledge Decision Underscores Importance of Plan Administrator Best Practices

The Supreme Court settled the debate over what constitutes "actual knowledge" in the context of an ERISA fiduciary breach claim in a unanimous and simple decision that applied dictionary definitions of the term "actual" to find that the fiduciary breach knowledge requirement means that "the plaintiff must in fact have become aware of that information." The Intel Investment Policy Committee v. ...

Eighth Circuit Delivers Guidance on Whether Rate Setting Amounts to Fiduciary Conduct

Courts have long struggled to set the boundaries at which point ERISA plan service providers exert sufficient control and discretion over plan assets to make them fiduciaries under ERISA 3(21). The significance of being an ERISA fiduciary is self-evident in the litigation context: if an entity is not an ERISA fiduciary, then it cannot be liable for a breach of ERISA's fiduciary duties and ...

ERISA Case in the District Court for the Southern District of New York Highlights Plan Sponsor QDRO Responsibilities

A sometimes forgotten issue in a divorce, separation, or other domestic relations proceeding is the division of retirement plan benefits between former partners and/or husband and wife. While the general rule is that ERISA and the Internal Revenue Code do not permit a participant to assign or alienate the participant's interest in a retirement plan to another person, a developed exception to the ...

Private Equity Fund Gains Important Victory

In Sun Capital Partners III v. New England Teamsters and Trucking Industry Pension Fund, the Court of Appeals for the First Circuit ruled on November 22 in favor of private equity funds, thus settling a long-running dispute as to whether two Sun Capital Funds could be held liable for the withdrawal of a portfolio company from the New England Teamsters Multiemployer Pension Plan.