Introduction To Employee Benefits Law

by Medill, Colleen E.

• ISBN13: 9780314150363
• ISBN10: 0314150366
• Format: Hardcover
• Copyright: 2004-12-30
• Publisher: West Group

Summary

This book was created to present the modern world of employee benefits law in a manner that is both easily understood by the students and enjoyable for the instructor to teach. The book provides a streamlined presentation of the Code rules for qualified plans, thereby making room for an expanded treatment of defined contribution plans (particularly 401(k) plans) and health care plans. Much of the coverage in the book is condensed by using narrative text to introduce each new concept and to summarize the blackletter principles of the law (where they exist). After reading their assignments from this book, students arrive at class with an understanding of the concepts and an ability, based on the numerous illustrations throughout the narrative text, to apply the rules to client situations. The book substantially reduces the amount of class time that must be devoted to eradicating student confusion and explaining how the rules operate. As a result, more class time may be devoted to discussion of the hypothetical client problems, presented periodically throughout each chapter, that are designed to test the students? understanding of the material.

Table of Contents

Preface	iii
Table of Cases	xix
Table of Statutes and Regulations	xxv
Introduction to Employee Benefits Law	1	(27)
Employee Benefits Law in Your Future Practice	1	(2)
Historical Background	3	(14)
History of the Regulation of Employee Benefit Plans	3	(3)
Legislative History of ERISA	6	(8)
Public Policy Goals of ERISA	14	(1)
Notes and Questions	15	(2)
Employee Benefit Plans in the Modern Workplace	17	(1)
Employee Benefits Law Today: Public Policy Issues	18	(6)
Federal Tax Policy and Employee Benefit Plans	18	(2)
Demographic Trends: Employee Benefit Plans and Public Benefit Programs	20	(2)
The Scope and Cost of Retirement Plan and Health Care Plan Coverage	22	(1)
Federalism and Preemption of State Law	23	(1)
Studying and Researching Employee Benefits Law	24	(3)
Discussion Question for Chapter One	27	(1)
Plan Operation and Administration	28	(52)
The Statutory Structure of ERISA and Its Regulating Federal Agencies	28	(1)
Types of Plans Subject to ERISA	29	(21)
What is a ``Plan''?	33	(1)
Donovan v. Dillingham	33	(4)
Note	37	(1)
Musmeci v. Schwegmann Giant Super Markets, Inc.	37	(7)
Notes and Questions	44	(1)
Who is an ``Employee''?	44	(1)
Nationwide Mutual Insurance Co. v. Darden	44	(3)
Notes and Questions	47	(3)
Plan Documents, Trust Requirements and Amendment Procedures	50	(10)
Plan Documents and the Written Instrument Rule	50	(2)
Trust Requirement for Plan Assets and Types of Trustees	52	(1)
Plan Amendment Procedures	53	(1)
Curtiss-Wright Corp. v. Schoonejongen	53	(7)
Plan Documents, Trust Requirements and Amendment Procedures---Continued
Notes and Questions	60	(1)
Plan Reporting and Disclosure Requirements	60	(18)
Legislative History and Policy Objectives	61	(1)
Reporting and Disclosure Requirements	62	(5)
Glocker v. W.R. Grace & Co.	67	(5)
Questions	72	(1)
Note on Estoppel Claims Based on Plan Disclosures	72	(6)
Discussion Questions for Chapter Two	78	(2)
Question One	78	(1)
Question Two	78	(1)
Question Three	78	(1)
Question Four	79	(1)
Question Five	79	(1)
Qualified Retirement Plans	80	(182)
Perspectives on Qualified Retirement Plans	81	(6)
National Retirement Policy: The Twin Problems of Elderly Poverty and Retirement Plan Coverage	81	(4)
Qualified Plans In Your Future Practice	85	(2)
Introduction to Qualified Retirement Plans	87	(19)
Comparison of the Code and ERISA Requirements for Qualified Plans	87	(3)
Vocabulary and Basic Taxation Principles	90	(1)
Qualified Retirement Plans Versus Nonqualified (Top Hat) Plans	90	(3)
Statutory Criteria for a Top Hat Plan Under ERISA	93	(2)
The Income Tax Treatment of Qualified Plans	95	(1)
Another Advantage of Qualified Plans: Benefit Security	96	(1)
Other Tax-Deferred Vehicles for Retirement Savings	97	(2)
Investment Fundamentals	99	(1)
The Time Value of Money	99	(2)
The Magic of Compounded Investment Earnings	101	(3)
Investment Diversification	104	(1)
Problems on Investment Fundamentals	105	(1)
Problem One	105	(1)
Problem Two	106	(1)
Types and Characteristics of Qualified Plans	106	(11)
Defined Contribution (Individual Account) Plans and Defined Benefit Plans	106	(7)
Problems on Types of Qualified Plans	113	(1)
Problem One	113	(1)
Problem Two	113	(1)
The Growth of Defined Contribution Plans	113	(3)
Notes and Questions	116	(1)
Age, Service and Vesting Requirements	117	(12)
Introduction	117	(1)
Age and Service Rules for Eligibility	117	(3)
Vesting Rules	120	(6)
Notes	126	(1)
Problems on the Age, Service and Vesting Requirements	127	(1)
Problem One	127	(2)
Problem Two	129	(1)
Benefit Accrual Requirements	129	(24)
Plan Amendments, Accrued Benefits and the Anti-Cutback Rule	130	(2)
Benefits Protected by the Anti-Cutback Rule	132	(4)
Plan Amendments Reducing the Rate of Future Benefit Accruals	136	(2)
Problem on Benefit Accrual Requirements	138	(1)
Cash Balance Plan Conversions	139	(1)
Berger v. Xerox Corporation Retirement Income Guarantee Plan	139	(6)
Campbell v. Bankboston, N.A	145	(6)
Notes	151	(2)
Problems on Cash Balance Plan Conversions	153	(1)
Problem One	153	(1)
Problem Two	153	(1)
Code Requirements for Qualified Retirement Plans	153	(61)
The Nondiscrimination Requirements	154	(2)
Definitions	156	(6)
Code Section 410(b): The Minimum Coverage Rules	162	(4)
Note	166	(1)
Problems on Code Section 410(b)	166	(1)
Problem One	166	(1)
Problem Two	167	(1)
Notes	168	(2)
Code Section 401(a)(4): Nondiscrimination in Benefits or Contributions	170	(5)
Problem on Code Sections 401(a)(4) and 401(a)(17)	175	(1)
Notes	175	(2)
Code Sections 401(k) and 401(m): Special Nondiscrimination Tests for 401(k) Plans	177	(4)
Problem on ADP Testing and Code Section 401(a)(17)	181	(1)
Notes	181	(4)
Code Section 416: The Top Heavy Rules	185	(2)
Problem on Top Heavy Plans	187	(1)
Limits on Qualified Plan Benefits for Individuals and Employer Deductions	188	(2)
Individual Limits Under Code Section 415	190	(2)
Employer Deduction Limits Under Code Section 404	192	(2)
Illustration: The Hypothetical Small Business Client	194	(2)
Problem on Code Sections 415 and 404	196	(1)
Notes	197	(1)
Distributions, Rollovers and Participant Loans	198	(1)
The Vocabulary of Payments from Qualified Plans	199	(2)
Distributions and Direct Rollovers	201	(2)
Plan Loans	203	(2)
Required Minimum Distributions	205	(1)
Special Distribution Forms for Married Participants	206	(1)
Lorenzen v. Employees Retirement Plan of the Sperry and Hutchinson Co.	207	(3)
Note	210	(1)
Problem on Distributions, Rollovers and Participant Loans	211	(1)
Mechanisms to Avoid Plan Disqualification	212	(2)
Qualified Plan Issues in Bankruptcy and Divorce	214	(13)
Bankruptcy and the Anti-Alienation Rule	214	(3)
Qualified Domestic Relations Orders	217	(1)
Dickerson v. Dickerson	218	(6)
Notes	224	(2)
Problems on the Anti-Alienation Rule	226	(1)
Problem One	226	(1)
Problem Two	226	(1)
Qualified Plan Issues in the Representation of Corporate Clients	227	(33)
Plan Mergers, Asset and Liability Transfers, and Spin-Offs	227	(2)
Plan Terminations	229	(1)
Standard Terminations	230	(1)
Distress Terminations	231	(1)
The Future of the PBGC	232	(2)
Partial Terminations of Single Employer Plans	234	(2)
Multiemployer Plans, Employer Withdrawal Liability and Delinquency Actions	236	(2)
Central States, Southeast and Southwest Areas Pension Fund v. Gerber Truck Service, Inc	238	(11)
Central States, Southeast and Southwest Areas Pension Fund v. Independent Fruit and Produce Co.	249	(10)
Notes and Questions	259	(1)
Discussion Questions for Chapter Three	260	(2)
Question One	260	(1)
Question Two	260	(1)
Question Three	260	(1)
Question Four	260	(1)
Question Five	260	(1)
Question Six	260	(1)
Question Seven	261	(1)
Question Eight	261	(1)
Question Nine	261	(1)
Welfare Benefit Plans	262	(114)
Perspectives on Welfare Benefit Plans	263	(4)
National Health Care Policy and Employer Health Care Plans	263	(3)
Welfare Benefit Plans in Your Future Practice	266	(1)
Introduction to Welfare Benefit Plans	267	(10)
Types of Welfare Benefit Plans and Other Employee Benefits	267	(3)
The Income Tax Treatment of Welfare Benefit Plans	270	(2)
Cafeteria (Code Section 125) Plans	272	(1)
Code Nondiscrimination Requirements for Welfare Benefit Plans	273	(1)
The Vocabulary of Health Care Plans	274	(2)
Notes	276	(1)
Insured and Self-Insured Health Care Plans	277	(26)
The Savings and Deemer Clauses of ERISA Section 514	277	(1)
Metropolitan Life Insurance Company v. Massachusetts	278	(7)
FMC Corp. v. Holliday	285	(7)
Notes	292	(1)
How Self-Insured Health Care Plans Work (and Why They Cost Less)	292	(1)
American Medical Security, Inc. v. Bartlett	293	(6)
Notes and Questions	299	(2)
Note on Health Savings Accounts (Defined Contribution Health Care Plans)	301	(2)
The Alphabet Soup Requirements for Health Care Plans	303	(28)
Cobra and Obra	304	(1)
Overview of Cobra	304	(6)
Holford v. Exhibit Design Consultants	310	(4)
Overview of Obra	314	(2)
Hipaa	316	(1)
History and Public Policy Goals	316	(1)
Restrictions on Preexisting Condition Coverage Exclusions	317	(3)
Prohibition Against Discrimination Based on Health-Related Factors	320	(3)
State Insurance Laws and Preemption by HIPPA	323	(1)
Enforcement of HIPAA	324	(1)
Notes	325	(1)
Problems on Obra, Cobra and Hippa	326	(1)
Problem One	326	(1)
Problem Two	327	(1)
NMHPA, MHPA and WHCRA	328	(1)
Overview of NMHPA	328	(1)
Overview of MHPA	329	(1)
Overview of WHCRA	330	(1)
Private Civil Actions to Enforce ERISA's Requirements for Health Care Plans	330	(1)
Amending or Terminating Welfare Benefit Plans	331	(7)
McGann v. H & H Music Co.	331	(6)
Notes and Questions	337	(1)
Welfare Benefit Plans and Other Federal Laws	338	(5)
Americans With Disabilities Act	338	(3)
Title VII and the Pregnancy Discrimination Act	341	(2)
Welfare Benefit Plans and Other Federal Laws---Continued Family and Medical Leave Act	343	(11)
Problems on FMLA, PDA and Cobra	347	(1)
Medicare As Secondary Payer Rules	348	(2)
Question	350	(1)
Uniformed Services Employment and Reemployment Rights Act	350	(1)
Age Discrimination in Employment Act	351	(3)
Retiree Health Care Plans and Erisa Litigation	354	(20)
The Impact of FAS 106 on Retiree Health Care Plans	354	(1)
Future Trends in Retiree Health Care Plan Benefits	355	(1)
The Evolution of Retiree Health Care Plan Claims in ERISA Litigation	356	(2)
James v. Pirelli Armstrong Tire Corporation	358	(16)
Notes	374	(1)
Discussion Questions for Chapter Four	374	(2)
Question One	374	(1)
Question Two	374	(1)
Question Three	374	(1)
Question Four	375	(1)
Question Five	375	(1)
Fiduciary Duties and Prohibited Transactions	376	(96)
Overview of Erisa's Fiduciary Responsibility Provisions	376	(1)
Who Is An Erisa Fiduciary?	377	(28)
Varity Corporation v. Howe	378	(13)
Notes and Questions	391	(2)
Pegram v. Herdrich	393	(10)
Notes and Questions	403	(2)
Fiduciary and Co-Fiduciary Responsibilities	405	(25)
Legislative History	405	(1)
Illustrations of Fiduciary and Co-Fiduciary Responsibilities	406	(1)
Overview of Fiduciary Duties	406	(2)
The Duty of Loyalty (Exclusive Benefit Rule)	408	(2)
The Duties of Prudence and Prudent Diversification of Plan Assets	410	(6)
Fiduciary Responsibilities and Social Investing	416	(1)
The Duty to Follow (or Disregard) Plan Terms	417	(3)
Co-Fiduciary Duties	420	(2)
Note on the Duty to Inform	422	(6)
Question	428	(1)
Problems on Fiduciary and Co-Fiduciary Responsibilities	428	(1)
Problem One	428	(1)
Problem Two	429	(1)
Prohibited Transactions and Exemptions	430	(22)
Overview of the Prohibited Transaction Rules	430	(4)
Legislative History	434	(4)
Notes and Questions	438	(1)
Commissioner v. Keystone Consolidated Industries, Inc.	439	(5)
Note	444	(1)
Lockheed Corporation v. Spink	445	(6)
Notes and Questions	451	(1)
Problem on Fiduciary Duties and Prohibited Transactions	452	(1)
Emerging Fiduciary Issues in 401(k) Plans	452	(18)
Company Stock and 401(k) Plans	454	(2)
The 404(c) Regulations and Participant Investment Behavior in 401(k) Plans	456	(5)
Notes and Questions	461	(2)
Fees and Expenses in 401(k) Plans	463	(6)
Notes and Questions	469	(1)
Problem on 401(k) Plan Investments and Erisa Fiduciary Responsibilities	470	(1)
Discussion Questions for Chapter Five	470	(2)
Question One	470	(1)
Question Two	470	(1)
Question Three	470	(1)
Question Four	471	(1)
Civil Enforcement Actions	472	(131)
Overview of Erisa's Civil Enforcement Provisions	472	(1)
The ``Nuts and Bolts'' of Erisa Litigation	473	(13)
Federal Court Jurisdiction and Removal	475	(1)
Metropolitan Life Insurance Co. v. Taylor	476	(4)
Notes and Questions	480	(2)
Statute of Limitations, Right to Jury Trial and Attorney Fees	482	(4)
502(a)(1)(B) Claims: Judicial Review of Claims for Plan Benefits	486	(25)
Department of Labor Regulations Governing Claims Procedures	487	(2)
Illustrations of Claims Litigation	489	(7)
The Standard of Judicial Review	496	(1)
Firestone Tire & Rubber Co. v. Bruch	496	(5)
Notes and Questions	501	(4)
Judicial Review of the Administrative Record	505	(1)
Black & Decker Disability Plan v. Nord	505	(5)
Notes and Questions	510	(1)
502(a)(2) Claims: Breach of Fiduciary Duty	511	(20)
Fiduciary Liability	512	(1)
Massachusetts Mutual Life Insurance Co. v. Russell	513	(10)
Notes and Questions	523	(1)
Measuring Investment Losses	524	(1)
Donovan v. Bierwirth	524	(4)
Notes and Questions	528	(3)
502(a)(3) Claims: The ``Catch-All'' Category	531	(66)
Claims Against Nonfiduciaries	533	(1)
Mertens v. Hewitt Associates	533	(12)
Notes and Questions	545	(3)
Harris Trust & Savings Bank v. Salomon Smith Barney	548	(8)
Notes and Questions	556	(1)
Claims to Enforce a Plan Reimbursement Clause	557	(1)
Great-West Life & Annuity Insurance Co. v. Knudson	558	(15)
Notes and Questions	573	(2)
Claims for Interference with Protected Rights Under Section 510	575	(2)
Inter-Modal Rail Employees Association v. Atchison, Topeka & Santa Fe Railway Co.	577	(3)
Notes and Questions	580	(2)
Claims for Individual Relief for Breach of Fiduciary Duty	582	(1)
Varity Corporation v. Howe	582	(11)
Notes and Questions	593	(4)
Discussion Questions for Chapter Six	597	(6)
Question One	597	(1)
Question Two	598	(1)
Question Three	598	(1)
Question Four	599	(1)
Question Five	600	(1)
Question Six	601	(2)
Preemption of State Law	603	(164)
Overview of Erisa Preemption of State Law	603	(4)
Statutory Provisions and Legislative History	603	(2)
The Evolution of Erisa Preemption Analysis	605	(2)
The Early Preemption Cases: Broad Preemption of State Law	607	(29)
Shaw v. Delta Air Lines, Inc.	607	(9)
Notes and Questions	616	(1)
Pilot Life Insurance Co. v. Dedeaux	616	(8)
Notes	624	(2)
Ingersoll-Rand Co. v. McClendon	626	(7)
Notes and Questions	633	(3)
Modern Preemption Jurisprudence: A (Rebuttable) Presumption Against Preemption	636	(33)
New York State Conference of Blue Cross & Blue Shield Plans v. Travelers Insurance Co.	636	(9)
Notes and Questions	645	(3)
Unum Life Insurance Company of America v. Ward	648	(8)
Questions	656	(1)
Egelhoff v. Egelhoff	656	(11)
Notes and Questions	667	(1)
Problem on Erisa Preemption of State Law	668	(1)
State Laws Regulating Health Care Plans and Health Care Providers	669	(48)
Rush Prudential HMO, Inc. v. Moran	669	(24)
Notes and Questions	693	(1)
Kentucky Association of Health Plans, Inc. v. Miller	693	(7)
Notes and Questions	700	(1)
Aetna Health Inc. v. Davila	700	(13)
Notes and Questions	713	(3)
Problem on Erisa Preemption and State Insurance Laws	716	(1)
Problem on Complete Preemption and State Law Claims	717	(1)
Discussion Questions for Chapter Seven	717	(4)
Question One	717	(1)
Question Two	717	(1)
Question Three	718	(1)
Question Four	718	(3)
App.
Sample Prototype Plan Adoption Agreement	721	(20)
Sample Form 5500 and Schedule T	741	(8)
Value Tables	749	(4)
Sample Form 5300 and Schedule Q	753	(8)
Limits on Contributions and Benefits (2004)	761	(2)
Sample QDRO	763	(2)
List of Acronyms	765	(2)
Index	767