501(a) Trust Breach of fiduciary responsibility

Discussion in 'Tax' started by MisterA, May 24, 2004.

  1. MisterA

    MisterA Guest

    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.
     
    MisterA, May 24, 2004
    #1
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  2. MisterA

    Dan Evans Guest

    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
    ERISA pre-empts state law.

    *Dan Evans
    *Author of the Tax Protester FAQ
    *http://evans-legal.com/dan/tpfaq.html
     
    Dan Evans, May 25, 2004
    #2
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