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Terms
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- fourteenth amendment
- reflects due process and equal protection. Pensions are property right so due process required. Pg 4
- ERISA defined
- 1974 Act. Employee Retirement Income security Act. applies primarily to private industry.
- ERISA provisions
-
min.participation
2) min. vesing req.
3) limit on benefit accrual
4) Max benefit amounts
5) min and max funding
6)min fiduciary responsiblity standards
7) min reporting and disclosure requirments
8) Mandatory federal plan termination insurance
applies to private pensions exempts public pensions. Applicable to public is $ and % limitaitons on benefits and contributions involving tax-qualified pension plans. - Tax Reform Act of 1986
- govern taxibility of pension beneffits payable from a pension plan.
- primary source of pension legal obligations
- State law
- State specfic public pension examples
- governance structure, qualification of plan administrators and onsultants, funding of the plan, investment plan, benefits provided by the plan. pg 9
- Local governments enactments
- especially local charters, supplement state laws
- Admin rules and similar regulation
- in general 2) administrative agency regulation, internal plan regulation, collective bargaining agreements, adminstrative hearings, prior administrative practice.
- soures of legal obligations for public pension plan boards and administrators
- Federal and State constitutional law; federal, state and local statutory law; administrative rules and similar regulation, common law;
- common law legal impact on pensions
- common law regulations (judicially determined laws); common law relationg to trusts, torts, contracts
- public employee pension plan
- collection of benefit prvisions under which a public employee becomes entitled to an immediate or eventual retirement annuity or benefit, obligated to pay specified amounts as contributions, certain reports are required to be filed.
- public employee retirement fund
- the accounting vehicle for retirment fund
- types of public pension plans
-
1] insurane involvement
2]defined contribution
3] defineed benefit
4]single employer or multiple employer plan - pension benefit responsibilites in general
- pension plan should assist by aiding recruitent of new qalified employees, retension of existing employees and out-transitionin of retirement eligible employees.
- pension goverening board area of responsibilities
- set benefit levels, 2] determine qualified pensionn benefit recepients 3] determine pension benefit amounts, timeliness of pension benefit payment
- Pension Benefit responsibilities
- 1] in general, 2] establish benefit levels, 3]mod. existing pension benefit, 4] due process considerations in elgibility, particpation and benefit entitlements, 5] judicial review.
- Employee Retirement Income Security Act (ERISA) of 1974
- applies to private pensions exempts public pensions. Applicable to public is $ and % limitaitons on benefits and contributions involving tax-qualified pension plans.
- Internal Revenue Code
- including 1986 Tax Reform Act, governs taxability of penion plans, covers employer "pick-ups."
- Age Disrimination in Employment Act (ADEA), EEO Legislation, Social Security Act
- Soc Sec. after 1986, Soc Sec other than medicare is not mandatory.
- Comprehensive Omnibus Budget Reconciliation Act (COBRA)
- governs the extension of certain employment health and welfare benefit coverages to terminationg and similar former employees and dependents and mandatory medicare coverag for newly hired public employees after 1986.
- Primary souce of legal obligations form most pension plan governing bodies
- State statutory Law. Addresses delegation of policy-making power. State law can be direct (setting forth operative provisions) or indirect. Statutory law can cover governance structure, qualification of plan administrators, funding of the plan, investment of plan assets, benefits provided by the plan. p9
- Local Government Enactments
- Supplement state statutory laws. Form of charter or resolution. E.G. specifications of those on the board, annual budget submitted, diability cases see a doctor