501(a) Trust Breach of fiduciary responsibility


M

MisterA

In a public employee plan, Pension board members are
intentionally acting on behalf of their respective
employers, to the tremendous detriment (nearly $500,000 per
participant) in future accrued benefit. The plan is a
qualified 401(a) defined benefit plan with an existing
Letter of Determination from the IRS. The plan has lawfully
been in place over three years, based on a Superior Court
validation and summary judgment, yet the Plan sponsors and
pension board members want to raid the assets and return
them to the general funds of the Plan Sponsors. I recognize
this as outrageous behavior, however my question is: What
federal law may be utilized to (a) prevent the money from
leaving the hands of the corporate trustee, and what federal
law may be used to prosecute the board members and plan
sponsors? This issue has now reached the point of being
ridiculous and smacks of the old Union pension days.
Incidentally, the plan is legal under state law as well.
 
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D

Dan Evans

MisterA said:
What
federal law may be utilized to (a) prevent the money from
leaving the hands of the corporate trustee, and what federal
law may be used to prosecute the board members and plan
sponsors?
The Employee Retirement Income Security Act of 1974 included
both tax provisions and labor law provisions, and gave the
Department of Labor the authority to act for employees. See
29 U.S.C. Sec. 1001 et seq.

For Department of Labor web pages on the fiduciary responsibilities of
plan sponsors and trustees, see
http://www.dol.gov/dol/topic/retirement/fiduciaryresp.htm
Incidentally, the plan is legal under state law as well.
ERISA pre-empts state law.

*Dan Evans
*Author of the Tax Protester FAQ
*http://evans-legal.com/dan/tpfaq.html
 

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