Employers Should Apply 401(k) Forfeitures to Benefit Employees

Mathew Moldawer
Mathew Moldawer
05/31/2024
Qualcomm designed a 401(k) plan for employees that allowed Qualcomm to use forfeitures to reduce employer contributions or apply to plan administrative expenses.  Qualcomm chose the former. After Qualcomm elected to apply forfeited contributions to reduce employer contributions, a group of plan participants challenged that action in federal court, alleging that Qualcomm had a fiduciary duty to use the forfeited contributions to lower the...
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Conflicting Instructions On Obtaining Conversion Of Group Life Coverage Results In Potential Liability for Employer

Kollman & Saucier
Kollman & Saucier
07/21/2023
The Heritage Group Investment Company (“THG”) employed Norman Burkett for 46 years.  During his employment Burkett enrolled in THG’s group life insurance policy (the “Life Plan”).  Burkett’s death benefit was $300,000.  Unum Life Insurance Company of America (“Unum”) was the plan administrator. In July 2019 Burkett was diagnosed with a brain tumor.  He qualified for long term disability in November 2019.  Unum sent Burkett a...
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Fifth Circuit Vacates DOL Fiduciary Rule

Kollman & Saucier
Kollman & Saucier
03/28/2018
On March 15, 2018, the United States Court of Appeals for the Fifth Circuit vacated the Department of Labor’s Fiduciary Rule.  The Fiduciary Rule (which is actually seven different rules promulgated by the Department of Labor) imposed heightened standards on retirement investment advisors, and expanded the definition of fiduciary under ERISA.  The Rule went into effect on June 9, 2017, with a transition period until January 1, 2018. After...
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English Only Notices May Not Be Enough To Comply With ERISA

Kollman & Saucier
Kollman & Saucier
08/15/2014
A federal court in Maryland has partially dismissed a complaint filed on behalf of nearly 40 Spanish-speaking current and former employees of Hatfield’s Equipment & Dedication Services Inc.  (“Hatfield’s”).  The plaintiffs, who worked as part of a concrete crew, alleged that Hatfield’s did not comply with the reporting and disclosure requirements for the company’s profit sharing plan, because plan documents and benefit statements...
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