TAX 9873 Lecture Notes - Lecture 17: Employee Retirement Income Security Act, Federal Common Law, Fiduciary
Document Summary
Applies to fiduciaries of funded pension and welfare plans. Duties are based on common law duties of care and loyalty owed by a trustee to a beneficiary. Erisa created a federal common law of fiduciary duty that expressly preempts state common law of trusts. fiduciary: duty/responsibility to protect beneficiary. Unfunded plans maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees [ top hat plan] * top hat= definition of highly paid is not in the code. Certain agreements provide for payments to a retired partner or his successor in interest. Pbgc insurance doesn"t apply to partners in a partnership intentionally fully fund partners pension plan so in case of bankruptcy all assets are there. Employee retirement income security act of 1974, as amended (erisa: plan fiduciaries have a great responsibility. , personal liability for fiduciary breaches, penalties can also apply to non-fiduciary parties.
