Also known as: plan fund or program · employee benefit plan · benefit arrangement
Written by attorneys · grounded in primary & secondary sources — see below
An arrangement established or maintained by an employer or employee organization to provide benefits to participants or beneficiaries through insurance or otherwise.
Prism Analytics asked Pavel Petrov, its chief financial officer, to serve as trustee of an employee stock ownership trust holding company shares for employees. After a market downturn, employees sued Pavel for alleged mismanagement of the trust. Prism maintained a directors and officers liability policy that covered Pavel's defense costs arising from his trustee role.
After Isaac Boggs died, his children from a prior marriage claimed that state law revoked his designation of his former spouse as beneficiary of pension benefits. The former spouse argued that ERISA governed the pension arrangement and preempted the state revocation statute, so the designation remained effective.
Select any source to read its text and confirm it supports the definition.
Western Air Lines denied flight engineer positions to pilots over age sixty because its retirement plan required all crew members to retire at that age. The pilots challenged the denial under the Age Discrimination in Employment Act, arguing that the plan did not qualify for the statutory exception.
After David Egelhoff divorced, his children sought to recover life insurance and pension proceeds paid to his former spouse under beneficiary designations made before the divorce. The former spouse contended that ERISA preempted the state statute automatically revoking those designations upon divorce.
A reasonable person must be able to ascertain the intended benefits, a class of beneficiaries, the source of financing, and procedures for receiving benefits from the surrounding circumstances.
No. The Supreme Court has rejected the idea that ERISA preemption depends on the extent of an employer's administrative preparation for paying employee benefits.
Yes. The Model Business Corporation Act expressly authorizes a corporation to purchase and maintain insurance for a director or officer serving at its request as a trustee of an employee benefit plan, regardless of whether the corporation could indemnify the same liability.
A person acts as a fiduciary only when managing, administering, or advising a plan, fund, or program that meets the statutory definition. Duties attach solely in that capacity.
…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…