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 […]

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 […]

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 […]