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Health Reform Bulletin 143 | Status of ACA Litigation; Murky Future of AHPs; ...CBIZ, Inc.
Litigation challenging and rescinding various aspects of the Affordable Care Act (ACA) continues to reign. Last December, Judge Reed O’Connor of the Fifth Circuit Court of Appeals opined that the individual mandate, in the absence of the tax repealed by the Tax Cuts and Jobs Act, is unconstitutional; and since it is a cornerstone of the ACA, then the entire ACA must fall (see our prior CBIZ Health Reform Bulletin 142).
Attached Newsletter is an attempt to cover monthly issues relevant in the context of transactions - covers SEBI, Companies Act, Income Tax, Stamp duty and other regulatory changes
Recent Developments with the $1 Million Compensations Deduciton LimitationCBIZ, Inc.
Public corporations generally cannot deduct more than $1 million in compensation per year for covered employees (i.e., certain key executives). Certain types of compensation, most notably performance-based compensation subject to shareholder approval, are excluded from this limitation. Recent guidance provides insight on several issues, including who are covered employees, whether shareholders actually had the ability to approve performance-based compensation and whether dividends on restricted stock units were subject to the $1 million limitation.
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The Government, in the person of the BEE Commissioner, indicated to a number of corporates who had implemented such structures that the resulting Ownership was “Indirect” and not acceptable. The black employees or beneficiaries do not have direct control over the shares, do not have a direct say in the running of the business and do not qualify for ownership. Business, however, believe the structures were set up in accordance with the requirements of the BEE Codes of Good Practice (and had legal opinions to prove this). This led to uncertainty.
Government Gazette 44951 was issued on 18 May 2021 to give clarity in this matter.
SBA Eases Commercial Real Estate Refinancing RulesChristopher Hurn
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Under ERISA Section 408(b)(2), retirement plan fees must be reasonable in light of the services being rendered. Retirement plan fees are also a hot target in the courts, most notably with last year's Tussey vs. ABB, Inc. decision. In this presentation, we discuss just what the reasonableness standard means for today's retirement plan sponsors, and an action plan for employers.
Social Media is important but it is more important to understand between social media solutions and social media management.
I have put across few points that you can think before outsourcing your social media activities on any third part agency.
You can contact me on sachin@sachinbansal.com
A resident of Madison, Wisconsin, Richard Shafer is the executive director of Well and Good LLC. In that capacity, Richard Shafer furnishes investment advice to retirement plan fiduciaries, including plans established under Code section 403(b).
Based in Madison, Wisconsin, Well and Good LLC Executive Director Richard (Dick) Shafer draws upon financial industry experience and fiduciary best practices to advise retirement plan sponsors. Dick Shafer focuses on retirement plans of independent schools and other not-for-profit organizations beyond Madison -- throughout the United States including New York, California and Massachusetts.
A guide to help advisors understand the proposed Department of Labor changes to the fiduciary definition regulations.
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What are the rules today?
What is being proposed?
How would some of the proposed changes impact an advisor’s practice?
Are there any action steps an advisor can take today in anticipation of the new rules?
A brief summary of recent news and publications from standard-setters on the topics of Accounting Standards for Private Enterprises (ASPE), Not-for-profit Organizations (NFPO) and Pension plans [December 17, 2012]
Over the last 5 or so years there has been a lack of clarity on the acceptability of certain ownership structures from a B-BBEE perspective. These are structures set up as Broad-Based Ownership Schemes (BBOS), Employee Share Ownership Programmes (ESOP), and trusts.
The Government, in the person of the BEE Commissioner, indicated to a number of corporates who had implemented such structures that the resulting Ownership was “Indirect” and not acceptable. The black employees or beneficiaries do not have direct control over the shares, do not have a direct say in the running of the business and do not qualify for ownership. Business, however, believe the structures were set up in accordance with the requirements of the BEE Codes of Good Practice (and had legal opinions to prove this). This led to uncertainty.
Government Gazette 44951 was issued on 18 May 2021 to give clarity in this matter.
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Under ERISA Section 408(b)(2), retirement plan fees must be reasonable in light of the services being rendered. Retirement plan fees are also a hot target in the courts, most notably with last year's Tussey vs. ABB, Inc. decision. In this presentation, we discuss just what the reasonableness standard means for today's retirement plan sponsors, and an action plan for employers.
Social Media is important but it is more important to understand between social media solutions and social media management.
I have put across few points that you can think before outsourcing your social media activities on any third part agency.
You can contact me on sachin@sachinbansal.com
A resident of Madison, Wisconsin, Richard Shafer is the executive director of Well and Good LLC. In that capacity, Richard Shafer furnishes investment advice to retirement plan fiduciaries, including plans established under Code section 403(b).
Based in Madison, Wisconsin, Well and Good LLC Executive Director Richard (Dick) Shafer draws upon financial industry experience and fiduciary best practices to advise retirement plan sponsors. Dick Shafer focuses on retirement plans of independent schools and other not-for-profit organizations beyond Madison -- throughout the United States including New York, California and Massachusetts.
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What are the rules today?
What is being proposed?
How would some of the proposed changes impact an advisor’s practice?
Are there any action steps an advisor can take today in anticipation of the new rules?
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administer, is compliant with ERISA fiduciary standards and protects the plan sponsor from legal and financial risk and liability. Working in conjunction with a knowledgeable retirement plan advisor, a discretionary corporate trustee is
uniquely suited to allow the plan sponsor to meet these goals.
New regulations have many executives wondering if their retirement plan is in compliance. Chances are you have a compliance violation. Patrick Shelton, Managing Member – Benefit Plans Plus, an affiliated company of Brown Smith Wallace, discusses retirement plan regulations and the critical importance of benchmarking.
Richard (Dick) Shafer serves as the executive director of Well and Good LLC, a Madison, Wisconsin-based registered investment advisor that specializes in providing investment recommendations to retirement plan fiduciaries. Before taking this role in Madison, Dick Shafer was senior manager of 401(k) plan products and services at CUNA Mutual. Before that, while at TIAA, Dick led a broad-based coalition to achieve transparency of 403(b) products in California public schools and community colleges.
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LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Is Your 403(b) Plan Covered by ERISA, Must it Be—and Does it Matter?
1. FALL 2010 :: VOL 40, NO 4
ASPPAJournal
THE
ASPPA’s Quarterly Journal for Actuaries, Consultants, Administrators and Other Retirement Plan Professionals
Is Your 403(b) Plan Covered by ERISA, Must
it Be—and Does it Matter?
A Slight Twist in the 403(b) Plan Kaleidoscope Provides
Another Picture
by James H. Culbreth, Jr. and Russ Dempsey
The market for retirement arrangements that qualify for favorable income tax
treatment under Internal Revenue Code (IRC) Section 403(b) [a “403(b) plan”]
has experienced considerable legal development in recent years. The Internal
Revenue Service (IRS) and Department of Labor (DOL) have been active with
regulatory action and administrative guidance for 403(b) plans. Significantly,
the legal changes may impact whether a plan is subject to the Employee
A
Retirement Income Security Act of 1974 (ERISA), as amended.
critical first step for 403(b) plan
sponsors and service providers
is to determine whether the
plan is an ERISA or non-ERISA plan. Some
employers are statutorily exempt from ERISA,
other organizations may desire ERISA coverage
and yet others may inadvertently take actions
causing such entities to unintentionally fall
under the purview of ERISA. Understanding
the applicable legal framework is necessary for
compliance, as well as expense management and
forecasting.
Eligible Plan Sponsors under the IRC
Employers eligible to sponsor a 403(b) plan include
public education institutions, select governmental
employers and IRC Section 501(c)(3)
Overview of 403(b) Plans
organizations.1 Examples of employers eligible
Historically, 403(b) plans functioned more like a group of individual annuity
to sponsor 403(b) plans include public schools,
contracts than a single plan. This lack of centralized control and responsibility
colleges, universities, county hospitals, charitable
kept employers from assuming the “ownership” role towards the 403(b)
and religious organizations, community service
plan that the IRC requires for benefit plans qualified under IRC Section
organizations and hospitals.
401, such as 401(k) plans. Consequently, compliance in 403(b) plans often
s s s
1 As such organizations are defined in the Internal Revenue Code. Further, State, political subdivisions of a State, or agency or instrumentality of the State or political subdivision that
are educational organizations described in 26 U.S.C. §170(b)(1)(A)(ii) are eligible.
Reprinted from the Fall 2010 issue of ASPPA’s The ASPPA Journal newsletter. The American Society of Pension Professionals & Actuaries (ASPPA) is an organization of
actuaries, consultants, administrators and other benefits professionals. For more information about ASPPA, call 703.516.9300 or visit the Web site at www.asppa.org.
2. 2 :: ASPPAJournal
THE
was less monitored by both the employers and the IRS. This era effectively Practically, however, a sponsor must balance the
ended with the Final Regulations under IRC Section 403(b), which became reasonable choice obligation regarding funding
effective January 1, 2009 and represented a significant transition by requiring, products against the duty to avoid any discretionary
among other things, a written plan document and more involvement by the activity in plan administration. The requirement
plan sponsor with 403(b) plan administration. means that plan sponsors must offer participants
a reasonable choice as to funding products and
Application of ERISA to 403(b) Plans—The DOL Safe Harbor annuity contractors in order for the sponsor to be
In general, ERISA applies to employee pension benefit plans established or viewed as not to have established or maintained
maintained by an employer, unless specifically excluded from the statute. a plan. Plan sponsors must select providers that
However, the terms “established” and “maintained” are not defined in ERISA. will accept the discretionary decisions related to
In an effort to clarify the application of ERISA to 403(b) plans, the DOL loans, hardship requests, QDROs, distributions, etc.,
issued a safe harbor regulation in 1979.2 while at the same time not materially impacting
According to the DOL regulatory safe harbor exemption, 403(b) plans reasonable choice.
funded solely through salary reduction agreements or agreements to forego an
increase in salary are not “established” or “maintained” by an employer and are Recent Clarifications on the DOL Safe
thus exempt from ERISA provided that: Harbor
• Participation of employees is completely voluntary; Recently, in Field Assistance Bulletins (FAB)
• All rights under the annuity contract or custodial account are enforceable 2009-02 and 2010-01, the DOL provided some
solely by the employee or beneficiary of such employee, or by an authorized clarification on these matters. Although welcomed,
representative of such employee or beneficiary; the FABs do not resolve all questions related to
• Involvement of the employer is limited to certain optional specified reasonable choice. The DOL confirmed that
activities, such as permitting annuity contractors to publicize products reasonable choice applies to both administrative
to employees, offering reasonable funding choices and summarizing or service providers and investment products used
compiling information regarding funding products, and; by 403(b) plans. The DOL further emphasized
that the facts-and-circumstance analysis takes into
• The employer receives no direct or indirect compensation in cash or
account whether the choice of providers and
otherwise other than reasonable reimbursement to cover expenses properly
investment products is reasonable. The size of the
and actually incurred in performing employer’s duties.3
employer is a relevant factor, since the expense
Employer involvement, including employer discretion, is a critical factor of facilitating contributions to multiple providers
in the analysis of whether the plan is an ERISA or non-ERISA plan. and the administrative burdens of compliance may
Governmental entities and public education institutions are statutorily weigh more heavily on small employers. Without
exempt from ERISA, so such eligible 403(b) plan sponsors need not specifying a number of providers that must be
be concerned with the regulatory safe harbor exemption. Religious offered, the DOL stated that there may be facts-
organizations have a different status, in that these organizations may elect and-circumstances that would justify the selection
ERISA coverage, an option that is not available to governmental entities and of a single provider if employees are permitted to
public education institutions. transfer or exchange their interest in the plan to
another provider.5
Complying with the DOL Safe Harbor In the DOL’s view, an employer may
The additional plan sponsor involvement required by recent regulatory allocate discretionary determinations to an
changes makes compliance with the ERISA safe harbor exemption much annuity provider, but may not directly delegate
more difficult for plan sponsors. Consistent with the safe harbor, a plan discretionary authority to a third party
sponsor may adopt a written plan document, comply with the benefit terms administrator (TPA).6 The rationale for this
of the contracts, process payroll contributions, coordinate administration position is that an employer seeking to comply
among different contract issuers and address tax-driven nondiscrimination with the safe harbor exemption may not have any
requirements, such as universal availability. Plan sponsors seeking to maintain discretion regarding the administration of the plan.
the exemption must use caution not to have responsibility for, or make, any Thus, an employer has no ability to delegate that
discretionary determinations regarding plan administration. The DOL has which it may not possess (i.e., an employer may
been clear that discretionary determinations such as authorizing plan-to- not have discretion, therefore may not delegate
plan transfers, processing distributions, satisfying qualified joint and survivor discretionary activities). Interestingly, a provider
annuity requirements and having discretion over hardship distributions, may engage a TPA to perform services on behalf
qualified domestic relations orders (QDROs), and eligibility or administration of the plan, including discretionary activities
of loans will place a plan sponsor squarely outside of ERISA’s safe harbor related to the administration of loans and hardship
exemption and place the 403(b) plan under ERISA.4 distributions.
On the surface, complying with the safe harbor exemption appears to
be as simple as avoiding discretion with respect to administration of the plan.
s s s
2 29 C.F.R. §2510.3-2(f). 5 Department of Labor Field Assistance Bulletin No. 2010-01.
3 Id. 6 Id.
4 Department of Labor Field Assistance Bulletin No. 2007-02.
3. FALL 2010 :: 3
Practical Considerations for Plan specific information necessary under ERISA.7
Sponsors of 403(b) Plans Covered by Periodic amendments to a 403(b) plan under
ERISA must be reported to participants through a
ERISA summary of material modifications within 210 days
A 403(b) plan that is not covered by ERISA avoids of the change. On the surface,
the rules governing the reporting and disclosure
of employee benefit plans, as well as the ERISA ERISA’s Fiduciary Requirements complying with
fiduciary rules, all of which are contained in Title I The increased emphasis on a plan sponsor’s fiduciary the safe harbor
of ERISA. Part 1 of Title I of ERISA is the source duties regarding investment of plan assets under
of the annual reporting and disclosure requirements, ERISA is well known, along with the heightened exemption appears
and Section 4 of Title I contains the rules regulating risk of participant complaints and possible litigation
fiduciary conduct. Thus, a 403(b) plan that for related to plan fees. A plan sponsor of an ERISA to be as simple as
any reason falls under ERISA’s jurisdiction [e.g., 403(b) plan is subject to ERISA’s standards for avoiding discretion
by providing employer contributions or having fiduciary conduct, including performing their duties
the plan sponsor too involved in administering solely in the interests of plan participants: with respect to
the 403(b) plan] must comply with ERISA’s • for the exclusive benefit of providing benefits and
mandates concerning annual reports and fiduciary defraying the plan’s reasonable costs;
administration
conduct. Coverage under ERISA requires a plan • with the care, skill and diligence of a prudent of the plan.
sponsor to take additional steps in order to protect person acting in like capacity and familiar with
plan participants (and thereby avoid liability) in such matters would use; Practically,
the operation of the 403(b) plan. Among these
considerations are:
• by diversifying investments to minimize the risk however, a sponsor
of large losses; and
Form 5500 Audit for Large 403(b) Plans Covered • in accordance with the plan documents.8
must balance
by ERISA Also, a fiduciary must prudently invest assets by the reasonable
Any 403(b) plan that is subject to ERISA must file considering the facts and circumstances relevant to
an annual report using Form 5500 and its schedules. each investment.9 This responsibility has been the choice obligation
Beginning with the 2009 plan year, 403(b) plans with
100 or more participants on the first day of the plan year
focus of a number of DOL regulations and some regarding funding
participant litigation. The plan sponsor of an ERISA
are required to have an annual audit of the plan’s 403(b) plan must carefully consider and document products against
financial statements. Under ERISA, the audit must the process used in all steps of plan administration,
be made by an independent party and is required none more important than the selection of the the duty to avoid
each year in which the 403(b) plan has 100 or more
participants. FAB 2009-02 provides guidance on
annuity or custodial account providers used by the any discretionary
plan. Failure to comply with ERISA’s fiduciary
how a plan sponsor can align its duty to produce an standards can lead to liability for plan sponsors and activity in plan
annual report with the unique character of 403(b) other plan fiduciaries.
plans [i.e., the likelihood that many plan assets may Although deferral-only 403(b) plans generally administration.
be held by financial service providers that no longer are not subject to ERISA, the transfer of employee
are part of the 403(b) plan]. This relief does not deferrals to the service providers under an ERISA
eliminate the need for large ERISA-covered 403(b) 403(b) plan must be made under the DOL’s
plans to obtain and file the audit as part of the Form interpretation of 29 CFR §2510.3-102 (requiring
5500 annual report, but it permits the auditor to that such transfers occur as soon as practical after
certify that “grandfathered” annuity contracts are not the deferrals are segregated) that generally the funds
reported in the audit. must be transferred within three business days, or
The Need for a Summary Plan Description (SPD) seven days for small employers. This timeframe is
and Other Disclosures shorter than the time permitted under the IRC
Even though the IRC now requires all 403(b) plans 403(b) Final Regulations, which has a similar rule
to have a written plan document, ERISA-covered but uses 15 days in the example provided.10
403(b) plans must also produce an SPD of the
403(b) plan and distribute it to participants within
Practical Considerations for Plan
120 days of coverage under the plan. Because the Sponsors of 403(b) Plans Not Covered
403(b) plan requirements under the IRC may be by ERISA
satisfied by using multiple documents for service A plan sponsor of a 403(b) plan that avoids
providers, the SPD for an ERISA 403(b) plan may mandatory ERISA coverage (e.g., all governmental
require a new document in order to contain the plans, plans with only employee deferrals and other
s s s
7 29 C.F.R. §2520.102-3 et seq. 9 29 C.F.R. §2550-404a-1(b).
8 29 U.S.C. §1101(a). 10 26 C.F.R. §1.403(b)-8(b).
4. 4 :: ASPPAJournal
THE
plans satisfying ERISA exemptions discussed earlier) be helpful (or a deterrent) to sponsors of a 403(b)
must still comply with legal requirements, often plan. Finally, state courts are not required to use the
without the clarity of ERISA’s fully-developed extensive DOL guidance and ERISA regulations
regulatory framework. Thus, while there is no need when calculating losses for imprudent investments or
Because the for a plan sponsor of an exempt plan to provide an late transmittal of salary deferrals, and this may affect
SPD or file annual reports, such plan sponsor must the damages under state law litigation.
403(b) plan follow applicable state laws concerning fiduciary
conduct and the rights of beneficial owners of assets Conclusion
requirements managed by a third party. As a result of the DOL’s structure for providing a
under the IRC This lack of clarity may become an issue in several useful but narrow avenue to avoid having a 403(b)
ways. Unlike ERISA, which clearly states that the plan plan covered under ERISA, a plan sponsor seeking
may be satisfied sponsor must either use only appropriate investments to avoid ERISA coverage should focus on two broad
or delegate that duty to an investment advisor, the criteria:
by using multiple sponsor of an exempt plan must first look to state • Do not place employer contributions in the
documents for law to determine its fiduciary duties. Case law and 403(b) plan; and
state statutes are relatively undeveloped in this area • Maintain minimum administrative involvement in
service providers, when compared to ERISA, and the consequence the plan.
the SPD for is less clarity for a plan sponsor regarding fiduciary
A plan sponsor whose 403(b) plan is subject to
duties and legal obligations. For example, a plan
ERISA (intentionally, unintentionally or
an ERISA sponsor’s selection of investment alternatives or service
unavoidably) must comply with significant parts of
providers may be a fiduciary function under state law.
403(b) plan However, state fiduciary laws developed over time,
ERISA’s regulatory structure and must comply with
annual reporting requirements, disclosure mandates
may require a primarily in situations where one party is responsible
and heavily-regulated fiduciary standards. While
for maintaining or investing assets for the benefit of
these produce additional burdens on operating the
new document in another party (e.g., in general to regulate investment
403(b) plan, they also offer predictable regulation and
responsibilities in trusts and similar private interests).
order to contain Unfortunately, such case law provides little guidance
protect the plan sponsor from claims under state laws
that may prove more costly due to ERISA’s
the specific where a group of funds is selected by a fiduciary and
preemption of state law. Plans exempt from ERISA
the beneficial owner makes the actual allocation of
avoid the extensive federal regulatory framework, but
information assets, as occurs in a 403(b) plan.
such plan sponsors are required to follow applicable
If the plan sponsor is a fiduciary under state law
necessary under for such decisions, state laws concerning prudent
state laws in the operation of the 403(b) plan.
ERISA. investment by fiduciaries do not follow the ERISA
James H. Culbreth, Jr. is a partner in the
standard but instead codify (fully or in modified employee compensation and benefits practice
fashion) the “prudent investor rule” found in group in the Charlotte office of Shumaker
Section 227 of the American Law Institute’s Third Loop & Kendrick, LLP For nearly 30
.
Restatement of Trusts. Moreover, not all states have years, Jim has advised public, private, tax-
adopted the Uniform Trust Code, which further exempt and governmental clients on employee
describes the investment standards. As a result, plan benefits and executive compensation law matters of all types
sponsors of exempt 403(b) plans should consult with and has lectured on employee benefits and fiduciary issues at
advisors who are familiar with the nuances of state the National Trust School and the Southeastern Trust School.
laws concerning fiduciary standards for investments Jim is a member of the Bar in North Carolina,Virginia and
when selecting or limiting the plan’s investment the District of Columbia, and he was named a 2009 North
Carolina Law Impact Leader by Business Leader Magazine.
alternatives (as permitted under the DOL safe harbor).
(jculbreth@slk-law.com)
In addition, issues with participants arising under
exempt 403(b) plans will be handled in state court,
Russ Dempsey serves as vice president &
since the access under ERISA to federal courts is
chief legal officer for United Retirement
not automatically available. The consequences of a Plan Consultants. Prior to joining United
state law forum vary because the claims will depend Retirement Plan Consultants, Russ served
upon the available statutes, which may include state as assistant general counsel for Nationwide
labor and compensation laws, contract laws and tort Financial Services, where he advised the
laws. As a result, plan sponsors of exempt plans may company on ERISA, IRS, DOL and SEC regulations and
be liable for punitive damages under state law (i.e., related employee benefit laws. Russ has also been general counsel
pain and suffering). In contrast, punitive damages to privately held companies. He began his career with the IRS
are generally unavailable under ERISA as damages as a Tax Law Specialist for the Employee Plans division. Russ
are primarily limited to the actual losses. Also, unlike currently serves as a Subject Matter Expert for the Education and
Examination Committee of ASPPA. (rdempsey@nivm.com)
the laws in most states, ERISA permits claims for
attorney fees to successful litigants, a fact that may