The Ninth Circuit held that employees’ agreements to arbitrate all claims the employees may have did not extend to claims brought on behalf of two ERISA plans under ERISA § 502(a)(2). In so ruling, the Court explained that the employees could not agree to arbitrate claims on behalf of the plans in individual employment contracts
Defined Contribution Plans
Third Circuit Analyzes Standing for ERISA Plan Management Claims
By Lindsey Chopin on
A recent Third Circuit decision reinforced the need for ERISA plaintiffs to plead injury-in-fact to establish Article III standing. In Krauter v. Siemens Corp., No. 17-1662, 2018 WL 921542 (3d Cir. Feb. 16, 2018), the plaintiff was a beneficiary of four pension plans that had been sponsored by Siemens. After the Plaintiff’s retirement, Siemens…
PBGC Issues Final Regulations Regarding Rollovers from Defined Contribution Plans to Pension Plans
By Justin Alex on
The PBGC has recently initiated efforts to enhance retirement security for Americans by promoting lifetime income options (i.e., annuitized benefits). As part of these efforts, as well as those of the IRS and U.S. Department of Labor, the PBGC issued final regulations regarding the treatment of rollovers from defined contribution plans to defined benefit plans for purposes of the PBGC’s statutory guarantees under Title IV of ERISA. The PBGC regulations are intended “to encourage people to get lifetime income by removing barriers to moving their benefits from defined contribution plans to defined benefit plans.” The guidance also “removes the fear that the amounts rolled over would suffer under guarantee limits should [the] PBGC step in and pay benefits.”
New Guidance on Locating Missing Participants for Terminated Defined Contribution Plans
By Emily Erstling on
On August 14, 2014, the U.S. Department of Labor (DOL) provided new guidance to plan fiduciaries of terminated defined contribution plans for locating missing and unresponsive participants in order to distribute their benefits. The guidance comes in the form of Field Assistance Bulletin (FAB) No. 2014-01, which replaces FAB No. 2004-02. As discussed below, the guidance may also prove useful in finding missing and unresponsive participants in other circumstances as well.