PART 1. PURPOSES AND BASIC PRINCIPLES

Transcription

1 TABLE OF CONTENTS PREFACE... III TABLE OF CASES... XIX TABLE OF STATUTES... XXXVII PART 1. PURPOSES AND BASIC PRINCIPLES Chapter 1. Origins and Fundamentals of the Pension System... 3 A. Origins of the Pension Fund The Emergence of Retirement History of Private Pension Funds... 8 William C. Greenough & Francis P. King, Pension Plans and Public Policy Growth of the Private Pension System B. Purposes and Extent of the Private Pension System Pension Fund Socialism Peter Drucker, Pension Fund Socialism Assets and Investments Sources of Retirement Income Pension Coverage Why Are Pension Plans Employment-Based? C. Social Security and Private Pensions Substitution, Integration, and Replacement Alicia H. Munnell, The Economics of Private Pensions Replacement Rates and Goals Chapter 2. Defined Benefit and Defined Contribution Plans Edward A. Zelinsky, The Defined Contribution Paradigm Note A. Defined Benefit Plans B. Defined Contribution Plans Money Purchase Plans Profit-Sharing Plans (k) and Cash-or-Deferred Arrangements ESOPs (b) Plans Health Accounts Individual Retirement Accounts C. The Changing Balance Between Defined Benefit and Defined Contribution Plans The Employment Relationship Steven Sass, Crisis in Pensions Intergenerational Wealth Transfer John H. Langbein, Social Security and the Pension System D. Hybrid Plans Cash Balance Plans and Pension Equity Plans Age-Weighted DC Plans ix

2 x TABLE OF CONTENTS 3. Multiemployer Plans Notes and Questions Chapter 3. Origins and Structure of ERISA A. The Studebaker Incident Michael Allen, The Studebaker Incident and Its Influence on the Private Pension Plan Reform Movement Notes and Questions B. Legislative History of ERISA Michael S. Gordon, Overview: Why Was ERISA Enacted? Notes and Questions C. The Structure of ERISA Post-1974 Amendments and Enactments Governmental and Church Plans The Meaning of Plan Massachusetts v. Morash What Is a Plan Under ERISA? Who Is an Employee or Employer? D. Welfare Benefit Plans: Why Regulate Nonpension Plans? Chapter 4. Preventing Forfeiture A. Vesting Policy The Gratuity Theory of Pensions Questions Permitting Forfeitures Questions B. ERISA s Vesting Requirements How a Vesting Schedule Works Structure of the Statute Employee Misconduct: Bad Boy Clauses C. Protecting Against Employer Misconduct Boruta v. Commissioner IRC 411(d) ERISA s Antidiscrimination Rule: D. Benefit Accrual E. Portability Chapter 5. Plan Amendment A. The Anti-Reduction Rule for Pension Plans Shaw v. International Ass n of Machinists Applying the Anti-Reduction Rule B. Defined Benefit Pension Plans in Corporate Transactions The Buyer s Options The Hold-Harmless Standard for Mergers and Spin-Offs Chapter 6. Funding and Terminating Defined Benefit Plans A. Minimum Funding Funding Policy Actuarial Assumptions

3 TABLE OF CONTENTS xi 3. Funding Requirements Financial Accounting B. Termination with Insufficient Assets The Pension Benefit Guaranty Corporation The Insurable Event and Its Consequences Dan M. McGill, Kyle N. Brown, John J. Haley, & Sylvester J. Scheiber, Fundamentals of Private Pensions Forbidding the Fund-Specific Defined Benefit Promise PBGC v. Ouimet Corp Protecting the PBGC PBGC Claims in Bankruptcy Multiemployer Plans Alicia H. Munnell, Guaranteeing Private Pension Benefits: A Potentially Expensive Business Notes C. Termination with Sufficient Assets The Law and Practice of Asset Reversion Insurer Default: The Failure of Executive Life Chapter 7. Spousal and Other Third-Party Interests A. The Antialienation Rule B. Spousal Annuities Retirement Equity Act of Questions Qualified Joint and Survivor Annuities Questions Qualified Preretirement Survivor Annuities C. Spousal Interests on Divorce Qualified Domestic Relations Orders Kennedy v. Plan Administrator for DuPont Savings and Investment Plan Note Dividing and Valuing Pensions D. Tensions with Community Property: Boggs Boggs v. Boggs Notes and Questions E. Victims of the Participant s Wrongdoing Guidry v. Sheet Metal Workers National Pension Fund An Exception for Wrongdoing? The Slayer Cases F. Creditors in Bankruptcy PART 2. PENSION TAXATION Chapter 8. Overview of the Taxation of Qualified Plans A. The Statutory Basis for Tax-Favored Retirement Saving Qualified Plans (b) Plans, Traditional IRAs, SEPs, and SIMPLE Plans

4 xii TABLE OF CONTENTS 3. Roth IRAs and Roth Contributions to 401(k) and 403(b) Plans Nondeductible Contributions Howell v. United States Notes B. The Economics of Tax Deferral C. Summary of Requirements for Qualified Plans Qualification Requirements with ERISA Counterparts Qualification Requirements with No ERISA Counterpart Notes and Questions The Mechanics of Qualification Remedial Amendment Period IRS Programs to Avoid the Disqualification Sanction D. Nonqualified Plans Unfunded Plans Revenue Ruling Notes ERISA Limitations: Top-Hat Plans and Excess Benefit Plans Funded Nonqualified Plans Rabbi Trusts and Funding Triggers Deferred Compensation Plans of Tax Exempt Employers: IRC E. Employment Taxes F. State Income Taxation Chapter 9. The Antidiscrimination Norm A. Purpose of the Antidiscrimination Rules Bruce Wolk, Discrimination Rules for Qualified Retirement Plans: Good Intentions Confront Economic Reality B. Coverage Basic Coverage Tests Questions Highly Compensated Employees Questions Excludable Employees Questions Controlled Groups and Affiliated Service Groups Questions Independent Contractors and Leased Employees Separate Lines of Business Questions C. Discrimination in Contributions or Benefits The Nondiscrimination Regulations Notes and Questions Benefits v. Contributions: The Cross-Testing Problem Limitation on Includible Compensation

5 TABLE OF CONTENTS xiii 4. Integration with Social Security Nancy J. Altman, Rethinking Retirement Income Policies: Nondiscrimination, Integration, and the Quest for Worker Security Questions Availability of Benefits, Rights, and Features Questions D. Top-Heavy Plans Questions E. Elective Contributions to 401(k) Plans Questions Chapter 10. Limitations on Benefits, Contributions, and Deductions A. Limitations on Contributions and Benefits Defined Contribution Plans Questions Defined Benefit Plans Questions B. Limitations on the Deduction of Contributions General Rules Contribution v. Expense Revenue Ruling Revenue Ruling Notes and Questions Contributions of Property and Employer Securities Defined Contribution Plans Defined Benefit Plans Contributions to More than One Type of Plan Contributions to Fund Retiree Health Benefits Notes Nondeductible Contributions: Carryforwards, Penalties and Correction C. Limitations on the Self-Employed Questions Chapter 11. Taxation of Participants and Beneficiaries A. Basic Income Tax Treatment Questions B. Rollovers Rollovers from Qualified Plans Rollovers from IRAs C. Transitional Lump Sum Averaging D. Employer Securities E. Loans Notes and Questions

6 xiv TABLE OF CONTENTS F. Limitations on Distributions Restrictions on Early Distributions a. Pension Plans Revenue Ruling IRS General Counsel Memorandum Note b. Profit Sharing and Stock Bonus Plans Revenue Ruling Revenue Ruling Additional Tax on Early Distributions Notes and Questions Minimum Distributions G. Estate and Gift Taxation PART 3. ERISA FIDUCIARY LAW Chapter 12. Fiduciary Status A. Who Is a Fiduciary Under ERISA? Blatt v. Marshall & Lassman ERISA s Many Fiduciaries Plan Assets: Mutual Fund Shares and Insurance Contracts B. The Employer as Fiduciary Varity Corp. v. Howe (I) Notes and Questions The Employer s Two Hats Chapter 13. Fiduciary Duties A. Substantive Fiduciary Law The Main Principles Fiduciary Law in Action: The Mazzola Case Cleaning Up the Multi s B. Duties of Disclosure Regulatory Disclosure Fiduciary Disclosure Fischer v. Philadelphia Electric Co. (II) The Window Plan Litigation C. Prohibited Transactions The Prohibited Transactions Rules Arthur H. Kroll & Yale D. Tauber, Fiduciary Responsibility and Prohibited Transactions under ERISA Policy and Practice Chapter 14. Fiduciary Investing A. The Investment Function Questions B. Defined Benefit Plans Donovan v. Bierwirth Liability Issues Damages Issues

7 TABLE OF CONTENTS xv 4. Voting Plan Shares Social Investing C. Defined Contribution Plans The Fiduciary Regime Under ERISA 404(c) The Problems of Participant Investing: The PPA (2006) Reforms D. Employer Stock Plans The Diversification Waiver The Employer Stock Litigation: Enron and Beyond Fifth Third Bancorp v. Dudenhoeffer Note Chapter 15. Benefit Denials A. Judicial Review of Fiduciary Decisionmaking The Standard of Review: Deferential or De Novo? Conflict of Interest: Developments Before Firestone Firestone Tire & Rubber Co. v. Bruch Interpreting Firestone Conflict of Interest After Firestone The Unum/Provident Scandal Questions Glenn: Restating the Conflict Standard Questions Applying Firestone After Glenn Severance and Accident Plans B. ERISA s Requirement of Written Terms Schmidt v. Sheet Metal Workers National Pension Fund Notes and Questions Oral Modifications and Estoppel Claims Substantial Compliance PART 4. ERISA LITIGATION Chapter 16. Enforcement and Remedies A. The Statutory Regime B. Scope of Available Remedies Russell and the Limitations on Extracontractual Damages Mertens v. Hewitt Associates Notes Post-Mertens Developments Cigna Corp. v. Amara Notes C. ERISA Parties: Who Can Sue? Enumerated Parties LaRue v. DeWolff, Boberg & Associates, Inc Notes Nonenumerated Parties D. Nonfiduciary Liability

8 xvi TABLE OF CONTENTS E. Attorney Fees Under ERISA F. Right to Jury Trial G. Statutes of Limitations Questions H. Exhaustion Requirements and Arbitration Chapter 17. Preemption A. Structure of the Statute Overview Legislative History Daniel M. Fox & Daniel C. Schaffer, Semi-Preemption in ERISA: Legislative Process and Health Policy Notes B. The Supreme Court s Initial Preemption Jurisprudence Alessi v. Raybestos-Manhattan, Inc Note After Alessi: The Broad Reading of Preemption C. Travelers: Revisiting the Scope of Preemption New York State Conference of Blue Cross & Blue Shield Plans v. Travelers Insurance Co Post-Travelers Jurisprudence and the Meaning of Relate To D. State Inheritance, Domestic Relations and Property-Rights Laws Egelhoff v. Egelhoff Notes State Property Law E. State Tort and Contract Claims Involving Plans Pilot Life and the Exclusivity of ERISA s Remedies Fraud and Misrepresentation Claims Against Plan Service Providers F. The Scope of ERISA Preemption: A Recapitulation G. Federal Common Law H. Removal and the Doctrine of Complete Preemption Metropolitan Life Ins. Co. v. Taylor Scope of the Complete Preemption Doctrine Chapter 18. Employment Law and Discrimination Issues A. Age Discrimination Introduction Normal Retirement Age (NRA) Dan M. McGill, Kyle N. Brown, John J. Haley, Sylvester J. Schieber & Mark J. Warshawsky, Fundamentals of Private Pensions Note: The Importance of NRA Early Retirement Dan M. McGill, Kyle N. Brown, John J. Haley, Sylvester J. Schieber & Mark J. Warshawsky, Fundamentals of Private Pensions Early Retirement Trends

9 TABLE OF CONTENTS xvii 5. Benefit Accrual Beyond NRA ADEA Overview of Developments Through OWBPA (1990) David A. Niles, The Older Workers Benefit Protection Act The Older Workers Benefit Protection Act of 1990 (OWBPA) Standards for Liability Under ADEA Hazen Paper Co. v. Biggins Notes ADEA Litigation Involving Employee Benefits Kentucky Retirement Systems v. E.E.O.C Waiver and Release of ADEA Claims B. Discrimination on the Basis of Gender Arizona v. Norris Notes C. Discrimination on the Basis of Disability Overview The Employee Benefit Issue D. Protection of Same-Sex Marriage United States v. Windsor Notes E. Other Employment Laws That Affect Plans USERRA State Wage and Hour Laws PART 5. EMPLOYER-SPONSORED HEALTH PLANS Chapter 19. Health Plans and Health Care Coverage A. Health Care Costs and Coverage B. Erisa Coverage of Health and Welfare Plans Nonpension Plans Why Regulate Nonpension Plans? McGann v. H & H Music Co Notes C. Post-ERISA Federal Regulation COBRA: Continuation of Health Benefits Other Federal Enactments D. Post-ERISA State Regulation: Preemption Revisited Metropolitan Life Ins. Co. v. Massachusetts The Insurance Exception Determining Whether a Law Regulates Insurance Post- Miller Damage Claims Against HMOs and Insurers: Davila Notes Mandated Employer Health Expenses E. The Affordable Care Act Introduction The General Approach Challenges to the ACA

10 xviii TABLE OF CONTENTS 4. The ACA s Effects on Employer Plans Summary of the Major Provisions of the ACA F. Health Savings Accounts G. Retiree Health Plans Retiree Medical Plans: Summary and Context Amending Retiree Health Plans M&G Polymers USA, LLC v. Tackett The Retiree Health Plan Litigation H. Claim Denials Under Health Plans I. Fiduciary Status of Medical Providers Pegram v. Herdrich Shielding HMOs INDEX