Also known as: employee benefit plans · employee benefits plan · employee benefits plans · EBP · ERISA plan
Written by attorneys · grounded in primary & secondary sources — see below
A written stock-purchase, savings, option, bonus, stock-appreciation, profit-sharing, thrift, incentive, pension, or similar plan solely for employees, officers, and advisers of a company. The term includes an employee-welfare benefit plan, an employee-pension benefit plan, or a combination of those two.
Echelon Security asked its research director Evelyn Ellison to serve as trustee of an employee stock ownership plan holding company shares. After regulators sued Ellison for concealing trial risks in both her officer and trustee roles, Echelon maintained a liability policy covering the trustee claims. The policy remained valid even though the corporation lacked power to indemnify the same liability.
Isaac Boggs designated his second wife as beneficiary of his employee pension plan. After his death his first wife claimed community-property rights in the plan benefits under state law. The Supreme Court held that ERISA preempted the state claim because the plan was governed exclusively by federal rules protecting designated beneficiaries.
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David Egelhoff named his wife as beneficiary of his employee life-insurance policy and pension plan. Following their divorce a Washington statute automatically revoked the designation. The Supreme Court ruled that ERISA preempted the state statute because it impermissibly related to the administration of the employee benefit plans.
The IRS asserted a tax lien against a taxpayer's interest in an employee benefit plan. The taxpayer argued the interest was exempt under state law. The Supreme Court held that federal tax law determines whether the interest constitutes property reachable by the lien regardless of state characterizations of the plan.
Yes. Model Business Corporation Act section 8.57 expressly authorizes a corporation to purchase and maintain insurance for an individual serving at its request as trustee of an employee benefit plan. Coverage is permitted regardless of whether the corporation could indemnify the same liability.
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Yes. ERISA's preemption clause supersedes state laws that relate to employee benefit plans. A statute that automatically changes plan beneficiaries conflicts with ERISA's requirement that plans be administered according to their written terms and designated beneficiaries.
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A director satisfies the standard by conducting herself in good faith and reasonably believing that her conduct with respect to the plan serves the interests of the participants and beneficiaries. Model Business Corporation Act section 8.51(b) treats such conduct as satisfying the best-interests requirement.
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…of marriage or a declaration of invalidity.” § 11.07.010(1). It defines “nonprobate asset” to include “a life insurance policy, employee benefit plan, annuity or similar contract, or individual retirement account.” § 11.07.010(5)(a). Respondents argued that they were entitled to the life insurance proceeds because the Washington statute…