The Department of Labor recently strengthened the procedural safeguards governing claims for disability benefits provided by employee benefit plans. The new regulations are designed to ensure that all claims and appeals for disability benefits are given a full and fair review. For example, an adverse benefit determination must include: (1) an explanation of the basis for the decision; (2) an explanation of the scientific or clinical judgment underlying the adverse determination or an offer to provide such explanation free of charge; (3) the rules, guidelines or other criteria within the benefit plan relied upon to deny benefits; (4) a statement that the claimant is entitled to receive upon request and free of charge copies of all records, documents and other information relevant to the claim for benefits; and (5) a description of the applicable appeal procedures. A failure to comply with these disclosure requirements may result in the claimant's right to seek immediate relief in federal court.
During fiscal year 2017, the Employee Benefits Security Administration, or EBSA, closed 1,707 civil cases. Furthermore, there were 1,303 applications to take part in the Voluntary Fiduciary Correction Program. The Abandoned Plan Program was able to return $27.9 million to participants in 586 plans that had been terminated. Overall, more than $1.1 billion was put back into worker health care, retirement and other Employee Retirement Income Security Act, or ERISA, plans.
Many workers in Texas invest for retirement through their employer-sponsored 401(k) plans. A possible class-action lawsuit emerging against General Electric Co. illustrates the harm caused when plan managers ignore fiduciary duties. Participants in GE's plan, which is one of the largest in the country with over $28 billion in assets, have filed a lawsuit based on violations of the Employee Retirement Income Security Act (ERISA).
Texas auto workers may be interested to learn that, on July 28, the Department of Labor filed an amicus brief that supported a Chrysler Group LLC retiree who was seeking to recover enhanced early retirement benefits. According to the court documents, the retiree was seeking the right to pursue equitable claims against his plan after being denied benefits due to undisclosed plan terms.
Catholic hospitals and other employers in Houston and around the nation are paying close attention to a case involving retirement plans that's scheduled to be heard before the United States Supreme Court. Pension plans affiliated with church hospitals are regularly exempt from the Employee Retirement Income Security Act of 1974; however, the Supreme Court will soon be ruling on three cases that challenged that exemption.
Wells Fargo employees in the Houston area may have lost money in their retirement plans after stock prices in the bank declined. Employees who allege that Wells Fargo violated the Employee Retirement Income Security Act have filed several complaints against the bank. The plaintiffs are seeking class action status for their ERISA claims.
An insurance company has been ordered in court to pay $5.5 million to a hotel and its employees on the grounds that it violated its fiduciary duties in connection with the Employee Retirement Income Security Act of 1974. Workers in Houston who may be in similar circumstances might be interested in the case.
Employer-sponsored retirement plans, such as 401(k) plans, are part of the retirement portfolios of many U.S. workers. What happens with such plans can have major impacts on what kind of retirement workers are able to have.
Developing a significant disability can have major ramifications within a person’s life. A worker going through this experience can have many worries about their financial future and questions about what things they could/should be doing to try to protect it.
Many things can be impactful for retirees. For individuals who had a retirement benefits plan through their employer, one such thing is what happens when they make a claim for benefits under the plan.