Fiduciaries Ordered to Pay Benefits Personally

Larry Beebe, CPA

A U.S. District Court in Oregon ruled that the trustees of a retirement plan must pay a participant’s retirement fund distribution from their own personal funds as a result of failing to prudently invest plan assets.

The plan had invested its assets in a single plat of undeveloped land owner by a real estate development company and in loans to that development company. The development company could not pay on any of its obligations. Because the trustees breached […]

DOL Investigating Plans that Fail to Locate Terminated Vested Participants

Larry Beebe, CPA

The Department of Labor (DOL) recently announced a new initiative to investigate the adequacy of Defined Benefit Plans procedures to locate and pay out benefits to terminated vested participants. DOL believed that many Plans do not have adequate systems to identify and pay terminated vested participants when they reach either the Plan’s normal retirement age or the IRS required minimum distribution age of 70 ½.

The failure to take action to identify, locate and pay terminated vested participants […]

Supreme Court Win For Self-Insured Health Plans

Larry Beebe, CPA

On March 4, the Supreme Court ruled self-insured health plans do not have to comply with a Vermont law that required them to submit to the state “information relative to health care costs, prices, quality, utilization, or resources required.” The third party administration of a self-insured health plan was issued a subpoena by Vermont to gain this information and threatened severe penalties for non-compliance. The plan refused to provide the information and argued the reporting requirements were […]

Form 990-N Changes Announced

Richard Ruvelson

Most small tax-exempt organizations (including affiliates of larger organizations and excluding private foundations which are required to file Form 990-PF regardless of size) whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ.

Form 990-N must be completed and filed electronically. There is no paper form.
Form 990-N filers may choose to file a complete Form 990 […]

Benefit Plan Policies: Travel and Expense Reimbursement Policy

Larry Beebe, CPA

In this series, we are reviewing the written plan policies needed to help your benefit plan stay compliant and operate most effectively. For a full list of the necessary policies and why your plan should implement them, click here.

Any employee benefit plan that reimburses trustees and/ or plan employees for travel expenses and/or for educational programs attended should have a travel and expense reimbursement policy.

In the fast changing world of employee benefits, education of plan trustees, administrators […]

ERISA Plans: Recovery Possible If Funds Expended?

Ashleigh Hall, CPA

Who’s Involved?

Montanile
Vs.
Board of Trustees (135 S. Ct. 1700)

What Happened?

In 2008, Robert Montanile was in an accident and incurred approximately $120,000 of medical expenses, which were covered by the National Elevator Industry Health Benefit Plan (the Plan). Upon receiving a $500,000 settlement for the incident, Montanile paid legal fees but did not reimburse the Plan. The Plan filed a lawsuit to recover its expenditures for the accident, specifically by enforcing a lien provision that is found in its […]

Do you Carefully Check Your 401(k) Plan Statement?

John Merchant, CPA, CFE

Many individuals who participate in 401(k) plans sponsored by their employer do not carefully check their accounts on a regular basis.  A recent report from the United States Department of Labor (DOL) shows that participants should regularly check their statements, and check them carefully.  The DOL launched an investigation of the administration of a plan in California as a result of complaints from participants.  As a result, the former owner of the sponsor company was convicted […]

2015 ACA Reporting Requirements Summary for Employers

Shelby Hammond

W-2 Reporting of health care premiums paid by employers:

Who must report?

Employers who issued at least 250 W-2s for the preceding calendar year.
Union employees in a multiemployer union plan count in determining whether or not you issued at least 250 W-2s in the prior calendar year, BUT you are not required to report the cost of health care that was provided through the multiemployer union plan as W-2 premium reporting is suspended indefinitely for employers […]

Duration of Retiree Benefits: Terminable or Lifelong?

Ashleigh Hall, CPA

The Parties:
M&G Polymers USA, LLC (M&G), et al
vs.
Tackett et al

The History & The Issue:

In 2000, M&G purchased the Point Pleasant Polyester Plant and entered into a collective bargaining agreement (CBA) that included a related Pension, Insurance and Service Aware Agreement (P&I Agreement) with the Union. The P&I Agreement provided for retirees, surviving spouses, and dependents to receive full company contributions toward the cost of health care.

When the CBA and P&I Agreement expired, M&G announced that retirees would […]

Tips for Increasing Revenue and Decreasing Expenses in your Benefit Plan

Shelby Hammond

Part of a trustee’s fiduciary responsibility is to manage the income and expenses of their plan. Below are some of the ways in which a trustee can increase revenue coming into the plan while managing the costs associated with the plan.

The primary sources of income of a multi-employer benefit plan are employer contributions and investment income.

Increase collections: To increase the income of a plan, trustees should carefully consider their processes for collecting employer contributions. Potentially increasing the […]

Bond Beebe in now Withum

Bond Beebe is now Withum. This powerful union expands and enhances our capabilities and services. Read More>>

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