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Definition
Created in 1913, enforcement and administration of Title I |
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Call attention to well-esablished principlas, issued in response to a request, not binding on DOL |
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Thirteen issued to welfare plans regarding HIPAA, PPACA |
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Term
Field Assistance Bulletins (FABs) |
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Definition
Memos to OE and RDs, issued by National Office (usually ORI), shared with public, to promote consistent enforcement/highlight policy and regs |
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Term
characteristics of a DB Plan |
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Definition
ER contirbutions, no individual acct balances, Ps do not choose or manage Plan investments, Insured by PBGC, no portability |
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Term
Types of Defined Contribution Plans |
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Definition
Savings and Thrift, Profit Sharing, Money Purchase, ESOPs, combined 401(k) profit sharing, KSOP (401(k) & ESOP combo) |
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Term
Cash or Deferred Arrangements (CoDAs) |
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Definition
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Term
Simplified Employee Pensions (SEPs) |
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Definition
A plan which allows small ERs to contribute inot IRAs on behalf of EEs reduce admin burdens and liabilities over maintaining a tradition Plan. No new SEPs since 1996 |
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Sep but with <100 EEs, EE deferrals (90 days outside limit), Less stringent R&D, no 5500 (5305 filed), Mandatory ER Contribs., unclear if FidBond needed |
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Definition
Individual Acct, must be designed for ER stock/securities, may be leveraged, exempt from 404(c) diversifiation |
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Definition
EBSA/HeathHuman Services/IRS, no preexisting under 19, dependent coveage under 26, no lifetime limit, cannot cancel unless fraud |
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Definition
1) Any person 2)acting directly as an EE or 3) indirectly in the interest of an EE in 4) relation to an EE bene plan and 5) includes a group or association of ERs acting for an ER |
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Definition
Not defined by statute, F/C test: How are members solicited, who can participate, who actually participates, how formed?, who exercises control?, member rights and privleges |
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Definition
Single employer Sec. 3(41): not a multi-employer Plan
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Definition
Multiemployer Plan Sec. 3(37): more than one ER makes cons, between EE org and 2+ ERs, and (vip) maintaied under a collective Bargaining agreement |
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Term
Multiple Employer Welfare Arrangement (MEWA) |
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Definition
Section 3(40): EE welfare plan or other arrangement, establihed or maintain, for the purpose of offering ERISA benes, to EEs of 2+ employers |
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Term
Multiple Employer Pensions |
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Definition
Not permitted under ERISA, recent rise in these arrangements. Called MEPs or Open MEPs |
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Definition
Sec. 3(4): any union, EE rep committee, ass'c, group/plan/org, in which EEs participate and which exist sto deal with ERs regarding EE bene plan, or other matters incidental to employment |
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Definition
3(6): any individual employed by an employer |
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Definition
Sec. 3(7): an employee, a former employee or member of an employee org who is or may become eligible to receive benes (fireston v. brunch) |
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Definition
Sec. 3(8): a person designated by a plan or P who is or may become entitled to recieve a bene |
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Definition
Not defined in Sec. 3. Case law/ F/C test: intended benefits/beneficiaries, source of financing, procedure to apply for and collect benefits |
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Term
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Definition
funded: benefits provided from a specific pot of money
unfunded/self-funded: benefits paid directly from the general assets of the ER or EE organization |
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Term
Defined Contribution/Individual Accoutn Plan |
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Definition
Sec. 3(34): investment risk/loss on P; benefits=contributions+income+gains +losses and forfitures of other participant acct balances - expenses |
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Definition
Sec. 3(35): A pension plan other than an individual acct plan; benefits based on a formula, typcially based on years of service and salary; invst. risk of gains or losses is on ER, PBGC insurance |
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Term
When does an employer contribution become a plan asset? |
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Definition
nEmployer contributions become plan assets after they are put into the plan (not when due).
nIf owed to plan and delinquent, the plan’s claim for the employer contribution is a plan asset. |
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Term
When does a participant contribution become a plan asset? |
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Definition
Plan ssets incl. amts that a P or B apays or has withheld from wages by an employer, for contributions to the plan, as of the earliest date on which such contributions can reasonably be segregated from teh ER's general assets. |
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Term
29 CFR 2510.3-102
Participant Contribution Regulation |
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Definition
Pension plans: No later than 15 business days after the end of the month in which the amts were withheld.
Welfare plans: no later than 90 business days after end of month in which amts withheld.
SIMPLE plans: no later than 30 days after end of the month in which amts withheld. |
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Term
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Definition
If the assets of an entity in whcih a plan invest include plan assets because of the plan's investment, the trust requirement is satisfied if the indicia of ownership is held in trust on behalf of the plan. |
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Term
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Definition
nLook-through applies only to “equity” interests.
nPlan investments for which underlying assets are never plan assets
nPlan investments for which underlying assets are always plan assets
nPlan investments where it depends on percentage of participation by “benefit plan investors” |
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Term
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Definition
No look through.
An entity that is primarily engaged, directly or through majority-owned subsidiaries, in a product or service other than the investment of capital.” Reg. § 2510.3-101(c)
nDefinition states that it also includes “venture capital operating companies” (VCOCs) and “real estate operating companies” (REOCs) |
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Definition
To beneficiaries and Participants |
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Term
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Definition
with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity & familiar with such matters would us in the conduct of an enterprise of a like character & with like aims. Not strict liability |
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404(a)(1)(D)
Plan Documents |
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Definition
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402(a)(1)
Named Fiduciary |
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Definition
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Term
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Definition
Plan Administrator is a fiduciary under 3(16). Duties are Record keeping, benefit determination, payment expenses, plan admin must admin the plan for the exclusive benefit of Ps and Bs. Must monitor each service provider and ensure reasonable fees. |
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Definition
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Term
402(c)(3) & 3(38)
Investment Manager |
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Definition
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Term
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Definition
Plan Admin 3(16)
Investment Mngr 402(c)(3) & 3(38)
Named Fiduciary 402(a)(1)
Trustee 403(a) |
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Term
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Definition
allows leasing of classroom space by multiemployer apprenticeship plans by union |
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Definition
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Term
Multiple Employer Welfare Arrangement |
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Definition
Sec. 3(4): An employee welfare benefit plan, or any other arrangement . . . . Established or maintained for providing health, life, disability, accident, training, day care, etc. benefits to the employees of two or more employers…
Not just health plans but other than pensions on retirement or death, and insurance to provide such pensions |
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Term
When does DOL have jx over a MEWA? |
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Definition
1. Determination as to whether the benefit being provided is a benefit described in Section 3(1).
2. Determination as to whether the benefit arrangement is established or maintained by an "employer" or an "employee organization." |
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Preemption Clause (MEWAs) |
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Definition
Sec. 514(a) ERISA preempts state laws regarding employee benefit plans, including health plans |
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Term
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Definition
514(b)(2)(A)States have the right to regulate the business of insurance and persons engaged in that business |
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Term
The Deemer Clause (MEWAs) |
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Definition
Sec. 514(b)(2)(B)State laws cannot deem an employee benefit plan to be an insurance company |
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Term
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Definition
A fully insured MEWA can be regulated by the State to the extent that the State establishes standards for levels of reserves and contributions for the plan or trust to be considered able to pay benefits in full when due. Any MEWA that is not fully insured may be regulated by the State to the extent it is not inconsistent with ERISA. |
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Term
502(l)(1) fiduciary breaches (penalties) |
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Definition
)(1) In the case of—
(A) Any breach of fiduciary responsibility under (or other violation of) part 4 by a fiduciary, or
(B) Any knowing participation in such a breach or violation by any other person,
The Secretary shall assess a civil penalty against such fiduciary or person in an amount equal to 20 percent of the applicable recovery amount |
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Term
502(l) "applicable recovery amount" |
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Definition
an amount paid by the fiduciary or other person pursuant to – A settlement agreement with DOL A court order based on proceedings instituted by DOL |
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Term
502(l) Settlement Agreements |
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Definition
Includes voluntary compliance agreement or settlement after DOL has filed civil action |
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Term
502(l) pentaly waiver/reduction |
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Definition
if teh DOL finds the person acted reasonably & in good faith or unreasonable to expect restoration of all losses w/o severe financial hardship |
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Term
Settlement agreement requirements |
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Definition
only if there is clear and unambiguous evidence of a settlement. At a minimum, this requires each of the following— A well defined agreement as to the terms of the correction EBSA’s promise not to sue the breaching party if it corrects the alleged violations A mutual understanding that the correction is made in exchange for the Department’s agreement not to bring suit. |
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Definition
for certain PII transactions, discretionary. Only for welfare and non-qualified plans. |
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Definition
mandatory: assess a penalty for distributions in a form other than a life annuity for DB plans with a liquidity shortfall, as provided by Sec. 206(e |
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Term
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Definition
Provides that welfare plans are not subject to participation and vesting rules for pension plans. |
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Term
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Definition
Section 3 - Provides that welfare plans are not subject to the funding rules for defined benefit plans and money purchase pension plans. Allows for payment from general assets without a trust. |
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Term
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Definition
Administration and Enforcement applies to both welfare plans and pension plans. |
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Definition
COBRA applies to health plans only |
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Definition
HIPAA applies only to Health plans |
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Term
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Definition
Plans must be established and maintained pursuant to a written instrument with a named fiduciary. |
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Term
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Definition
Document that contains all required SPD information with certificate of coverage |
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Term
Participant Disclosure Reg. 2520.102-3(p) & (q) |
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Definition
SPD must disclose sources of contributions and identity of the funding medium, including an insurance company, trust fund, organization or other entity. |
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Term
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Definition
Requires that all plan assets be held in trust by one or more trustees. Benefits paid from sponsor's general assets are not plan assets. |
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Term
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Definition
The trust requirement for plans does not apply to any asset of the Plan consisting of insurance contracts and any assets of the plan held by an insurance company. |
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Term
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Definition
The trust requirement does not apply to a plan the Secretary exempts form the trust requirement if the plan is not subject to Part 2, Part 3, and Title IV (welfare plans are not subject to these parts) |
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Term
Technicagl Release 92-01 Non-Enforcement Policy |
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Definition
DOL has a non-enforcement policy for welfare plans regarding the trust requirement even if there are employee contributions. |
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Term
Types of Group Health Plans |
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Definition
Single ER Arrangements (METs) Pooled Coverage (VEBAs) MEWAs (Colletive bargaining agreements) |
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Term
Account Based Health Plans |
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Definition
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Term
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Definition
Self-Insured (partial or fully) Fully insured |
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Term
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Definition
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Term
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Definition
Plan Sponsor purchases a policy from an Insurance Company. The insurance company is responsible for processing and paying all claims under the policy. EE pays portion of premiums, paid via ER Insurance company has all the risk. |
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Definition
Cheaper than Fully insured and does not need to meet State insurance requirements. |
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Term
Common Issues with Fully Insured Plans |
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Definition
ER doesn't forward premiums so coverage is retroactively withdrawn. |
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Term
Section 408(b)(2) Exemption |
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Definition
from 406(a) for providing services for a reasonable fee |
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Definition
permits plan sponsored by insurance companies to use sponsor's product and services |
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Term
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Definition
Transactions involving insurance agents, brokers and consultants |
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