M9: Flashcards
The amount an employee pays on Social Security wages
7.65% on wages up to the Social Security TWB
Statute of limitations for asserting a fiduciary claim
3 or 6 years, depending on circumstances
An employer that makes a commitment systematically to pay certain benefits undertakes a host of obligations, such as determining the eligibility of claimants, calculating benefit levels, making disbursements, monitoring the availability of funds for benefit payments, and keeping appropriate records in order to comply with applicable reporting requirements.
An ongoing administrative scheme means plan is subject to ERISA
Court conclusions on oral severance agreements
Court cases determined this type of agreement can be regulated
by ERISA
Daycare centers
A benefit in a plan covered by ERISA
Prepaid legal services
A benefit in a plan covered by ERISA
Certain church plans
Plans exempt from ERISA
Unfunded excess benefit plans
Plans exempt from ERISA
ERISA section that authorizes a court’s ability to impose stiff penalties on plan administrators
ERISA Section 502(c)(1)(B)
Penalty amount for violations of Section 502(c)(1)(B)
$1,000 per day (in 2021) ($2,259 with indexing)
ERISA defined administrator
A person designated so by terms of the benefit plan
The only individuals allowed to recover civil penalties under 502(c)(1]
Participants and beneficiaries
Definition of dependents under group health care by the ACA
Biological, stepchild, foster child, adopted child
A comprehensive statute designed to promote the interests of employees and their beneficiaries and employee benefit plans. It is a federal law intended to provide a uniform administrative scheme applicable to employee benefit plans.
1974 Employee Retirement Income Security Act (ERISA)
ERISA law supersedes state law
ERISA Preemption
a. The claim is barred by the statute of limitations.
b. The plaintiff lacks standing to request the documents.
c. The plaintiff sent the request to the wrong person.
d. The plaintiff requested documents not subject to the Section 502(c)(1) penalty.
e. The plaintiff failed to make a sufficiently specific request (no “clear notice”).
f. The administrator’s failure or refusal resulted from matters reasonably beyond the administrator’s control.
Standard defenses available to plan administrators
Purpose of ERISA Section 502(c)(1)
Induces plan administrators to comply & punishes noncompliance
9th Circuit court case that deemed severance pay over 2 yrs. – not an ongoing administrative scheme
Delaye v. Agripac, Inc.
New 0.9% payroll tax
Taxes on higher levels of employee wages; not on employers
Programs conferring deferred compensation for a “select group of management or highly compensated employees”
Top-Hat Plans
o administrative convenience
o Consistent set of rulings
o Consistent legal environment
Benefits of a contractual venue selection clause
The location of this type of litigation is important because regional circuit courts have a tendency to side with either Plan Administrators or Employee’s depending on location
The standard of judicial review in the context of top-hat plan benefit disputes
A court case that stated a lump sum severance payment (for a plant closure), triggered by a single event that might never occur, was not a plan for purposes of ERISA.
Fort Halifax Packing Co., Inc. v. Coyne
Court case that deemed a severance plan regulated by ERISA could be found so long as oral representations did not contravene “properly published written representations.”
Henglein v. Informal Plan for Plant Shutdown Benefits
- Plan sponsor can vary the benefits
- Can arbitrarily choose among plan participants
- Can use its discretion in deciding when or whether severance benefits will be paid
- No planned documents need to be prepared and no governmental reports
Advantages of non-ERISA regulated retention incentive plans
Court case that required an individual determination as to whether each employee was eligible for state unemployment compensation, which, in turn, depended on whether the employee was terminated for cause, the court ruled that the statue imposed an ongoing administrative scheme, thereby subjecting the arrangement to ERISA regulation
Simas v. Quaker Fabric Corp.
The US Supreme Court upheld ERISA preemption of Vermont State law trying to require even self-funded plans to provide health data
Gobeille v. Liberty Mutual Ins. Co.
Provides for up to 12 weeks of unpaid job-protected leave to employees for baby bonding or to attend and care for a serious health condition of the employee or his or her family member.
1993 Federal Family and Medical Leave Act (FMLA)
Applies to those employing 50 or more on each working day for at least 20 or more calendar weeks in the current or preceding calendar year.
1993 Federal Family and Medical Leave Act (FMLA)
a. The plaintiff must make a written request.
b. The request must be made to the plan administrator.
c. The request must give clear notice of the documents sought.
Requirements to pursue civil penalty for request for plan documents
