http://www.erisalawfirm.com daily 1 2009-07-31T19:58:00Z http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/aircraft-mechanics-fraternal-association-asks-dol-and-pbgc-to-conduct-forensic-audit-of-united-airlines-pension-plan The PBGC and its plan termination insurance protect and assume the pension obligations of troubled companies. According to the Aircraft Mechanics Fraternal Association, forensic audits should be performed and the work of parties providing financial planning should be examined to determine if those parties were partially responsible for the plans’ demise. No publisher espen 2009-08-05T17:14:11Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/airline-plans2019-underfunding-illustrates-broader-problems-with-the-defined-benefit-pension-system Underfunded pension plans are a symptom of the financial ills facing the airline industry. No publisher espen 2009-08-05T17:25:00Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/bank-serving-as-trustee-of-ira-provides-investment-recommendations-consistent-with-five-model-investment-strategies.-the-bank-recommends-investments-among-three-of-the-bank2019s-mutual-funds-and-some-unrelated-mutual-funds.-some-insurance-companies Bank serving as trustee of IRA provides investment recommendations consistent with five model investment strategies. The Bank recommends investments among three of the bank’s mutual funds and some unrelated mutual funds. No publisher espen 2009-08-05T17:32:31Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/court-rules-that-individual-employees-of-investment-consulting-firm-may-be-liable-for-advice-given-to-pension-plans Investment consulting firm made recommendations to plan trustees regarding investment manager to be hired by plan. After plan lost millions, the individuals working for the consulting firm who were primarily responsible for advising the trustees regarding the investment manager were sued for providing bad investment advice. No publisher espen 2009-08-21T19:52:59Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/dol-and-sec-issue-guidance-addressing-potential-conflicts-of-interest-of-pension-consultants An SEC staff report issued in May 2005 raised serious questions about whether some pension consultants are disclosing potential conflicts of interest. No publisher espen 2009-08-05T17:37:36Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/dol-issues-tips-for-selecting-and-monitoring-plan-service-providers The DOL prepared tips to assist business owners in carrying out their responsibility under ERISA to prudently select and monitor plan service providers. No publisher espen 2009-08-05T17:23:18Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/dol-response-to-allegations-that-some-in-insurance-industry-have-developed-a-pattern-and-practice-of-underreporting-commission-and-fee-payments-to-brokers-and-agents In response to allegations by Fortis Benefits Insurance Company that some in the insurance industry have developed a pattern and practice of underreporting commission and fee payments to brokers and agents based on incorrect interpretations of Schedule No publisher espen 2009-08-05T17:27:21Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/dol-rules-that-plan-fiduciaries-may-not-increase-expenses-sacrifice-investment-returns-or-reduce-the-security-of-plan-benefits-to-promote-collateral-public-policy-goals After AFL-CIO officials reportedly suggested that plan fiduciaries could spend plan assets to inform plan participants about the current debate on Social Security and could hire and fire plan service providers based on the providers’ opinions on Social Security, the DOL issued an advisory opinion expressing grave concern about such statements. No publisher espen 2009-08-05T17:30:08Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/state-law-claim Insurance company agents recommended that small business owners set up defined benefit plan and represented that because the plan would be insured by the PBGC, they were guaranteed 100% of the spousal benefits promised under the plan. No publisher espen 2009-08-03T19:02:32Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/future-of-the-defined-benefit-system-and-the-pension-benefit-guaranty-corporation According to a forum comprised of government officials, researchers, accounting experts, members of the investment community and others, improvements should be made to the transparency and timeliness of pension plan financial information that is reported to plan participants, regulators and those who invest in the plan sponsor’s stocks and bonds. No publisher espen 2009-08-05T17:36:19Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/gao-says-that-dol-has-made-improvements-to-pension-enforcement-program-but-that-significant-challenges-remain The Department of Labor’s Employee Benefits Security Administration (ESBA) closed about 4,400 investigations in 2004,with nearly 70% of those cases resulting in corrections of ERISA violations. No publisher espen 2009-08-21T19:54:50Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/government-actions-could-improve-the-timeliness-and-content-of-form-5500-pension-information The DOL, IRS, and PBGC use the information provided on Form 5500 for as a compliance tool to identify actual and potential violations of the ERISA and the Internal Revenue Code. Currently there can be a three year lag in the release of Form 5500 information. No publisher espen 2009-08-05T17:35:13Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/plan-fiduciary-must-disclose-material-information-regarding-potential-service-providers-even-if-fidcuciary-is-not-participating-in-decision-making-about-that-service-provider-in-order-to-avoid-conflict-of-interest ERISA prohibits plan fiduciaries from acting, in his individual or other capacity, in any transaction involving the plan on behalf of a party whose interests are adverse to the plan. No publisher espen 2009-08-05T17:26:12Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/recent-experiences-of-large-defined-benefit-plans-illustrate-weaknesses-in-funding-rules The Government Accountability Office (GAO) found that from 1995 to 2002 39 of the 100 largest defined benefit pension plans were less than 100% funded. No publisher espen 2009-08-05T17:28:41Z Article http://www.erisalawfirm.com/erisa-perspective/erisa-in-the-news/sec-staff-study-of-pension-consultants-indicates-that-business-alliances-among-pension-consultants-and-money-managers-can-give-rise-to-serious-disclosure-and-conflicts-of-interest-issues-that-have-not-been-addressed In part due to concerns that pension consultants may steer clients to hire money managers and other vendors based on the pension consultant’s other business relationships and receipt of fees from those firms, the SEC Staff conducted a study to explore risk areas relating to pension consulting. More than 50% of the pension consultants reviewed provided products and services both to plans and to money managers and mutual funds on an ongoing basis. No publisher espen 2009-08-05T17:33:48Z Article