Erisa Pension Violations

ERISA is used to refer to the body of laws regulating employee benefit plans.  ERISA is also the acronym for Employee Retirement Income Security Act of 1974. There are special guidelines for ERISA pension claims, divorce and ERISA pensions and ERISA pensions and bankruptcy.  These ERISA pension laws are complex easy to violate if you do not have experience with them.  

ERISA Civil Violations

Examples include:

• Failing to operate the plan prudently and for the exclusive benefit of participants.
• Using plan assets to benefit certain related parties to the plan, including the plan administrator, the plan sponsor, and parties related to these individuals.
• Failing to properly value plan assets at their current fair market value, or to hold plan assets in trust.
• Failing to follow the terms of the plan (unless inconsistent with ERISA).
• Failing to properly select and monitor service providers.
• Taking any adverse action against an individual for exercising his or her rights under the plan (e.g., being fired, fined, or otherwise being discriminated against).

There are also fiduciary requirements under ERISA Pension laws. Violators of ERISA pension laws can be subject to criminal penalties.

Bankruptcy and Divorce

A divorce and ERISA pension presents a special challenge under ERISA.  The pension is an asset to be divided but in order to be valid the spouse receiving a portion of the pension must have a Qualified Domestic Relations order.  ERISA pension and bankruptcy also has special rules and to be followed under ERISA and bankruptcy law.  There are specific timelines to be followed to protect the employee if their employer goes bankrupt.

Help from a Lawyer

ERISA pension laws are complicated.  There are tax consequences certain transactions and special requirements for ERISA pensions when you file for a divorce.  If your employer should go bankrupt there are regulations regarding employee’s ERISA pension benefits and deadlines that must be met. Competent legal counsel in this area is important.  Select a lawyer who has experience with ERISA pension law, and its effects on divorce and bankruptcy.