What is ERISA agreement?
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
Are trusts subject to ERISA?
Income Security Act of 1974 (ERISA) requires that “all assets of an employee benefit plan be held in trust by one or more trustees.” Plans not subject to ERISA are not subject to this trust requirement, although governmental Section 457(b) deferred compensation plans are subject to a trust requirement under Section 457 …
What is a benefit plan trust?
An employee benefit trust is an investment plan where funds contributed by an employer and an employee are held in a trust. It usually applies to retirement plans because most other employee benefits are services that the employer pays as they are used.
What is a health plan trust?
The purpose of the Trust is to provide for death, sickness, accident and other insurance benefits to PORAC members and their beneficiaries. Benefits are guaranteed through both fully insured and self-funded products where plan assets are used for the exclusive purpose of providing such benefits.
What are the causes of action under ERISA?
ERISA § 502(a)(1)(B)1 provides participants and beneficiaries a cause of action against plans and, in some circuits, plan administra-tors for the denial of benefits or rights under an ERISA plan. Section 502(a)(1)(B) actions allow participants and beneficiaries to enforce plan terms and to require that plan administrators meet their du-
Who are the beneficiaries of ERISA 502 ( 2 )?
Section 502(a)(2) provides participants, beneficiaries, fiduciaries, and the Secretary of Labor the right to sue for damages on behalf of the plan. Section 502(a)(3) provides participants and beneficiaries the right to obtain equitable relief on their own behalf.
Who is allowed to sue on behalf of a beneficiary?
Section 502(a)(3) provides participants and beneficiaries the right to obtain equitable relief on their own behalf. The Secretary of Labor is also allowed to sue, on behalf of the plan, under §502(a)(5).
Can a plan sponsor indemnify a trustee under ERISA?
Generally, provisions in a plan document which relieve trustees from liability for breaching their fiduciary duties are void under ERISA. This means that the exculpation and indemnification of trustees by the plan is prohibited. However, the indemnification of trustees by the employer which sponsors the plan is permitted.
What are the responsibilities of a fiduciary under ERISA?
ERISA imposes certain duties and responsibilities on the “fiduciaries” who are responsible for the administration of those retirement plans. ERISA defines the term “fiduciary” to include any person who: Exercises any discretionary authority or control with respect to plan assets. Renders investment advice as to plan assets for a fee.
What are the restrictions of being a trustee?
Trustees must not engage in transactions which violate the following specific ERISA restrictions on fiduciary conduct: Trustees and other fiduciaries cannot deal with plan assets for their own account (i.e.,self-dealing).
Can a trustee of a retirement plan deal with their own assets?
Trustees and other fiduciaries cannot deal with plan assets for their own account (i.e.,self-dealing). Trustees and other fiduciaries are not to act in a transaction involving the plan on behalf of a party whose interests are adverse to those of the plan (i.e., engage in conflicts of interest).