Retirement Security Law Commons^™

Safeguarding Public Pensioner Standing After Thole, Evelyn L. Stein

Vanderbilt Law Review

Today, public American pension funds hold over $6 trillion dedicated to rewarding the labor and stabilizing the retirements of millions of employees. These funds are facing increased scrutiny as activists draw more awareness to controversial investment strategies, resulting in litigation by plaintiffs arguing funds inappropriately prioritize goals other than financial returns. Structurally, many public funds operate with a defined benefit (DB) model, meaning fund beneficiaries are guaranteed specific payouts based on factors such as years of service and age at retirement. Because of this DB model, such litigation has been stymied by the U.S. Supreme Court's decision in Thole v. …

When A Promise Isn't A Promise: Public Employers' Ability To Alter Pension Plans Of Retired Employees, Gavin Reinke

Vanderbilt Law Review

The economic downturn has placed enormous pressure on state budgets. The recession hit state pension funding plans for public employees particularly hard. Some projections indicate that, even with as much as an 8% return on their pension fund investments, seven states' funds will be out of money by 2020, and half of states' funds will be fully depleted by 2027.

State legislatures are scrambling to pass measures designed to return their pension funds to solvency. Most proposals only call for decreases in the amount of pension benefits provided to future retirees, but four states have gone much further. Colorado, Minnesota, …

Fiduciaries Under Erisa: A Narrow Path To Tread, H. Stennis Little, Jr., Larry T. Thrailkill

Vanderbilt Law Review

The Employee Retirement Income Security Act of 1974'(ERISA) introduced a new era for a broad spectrum of American society. The new Act had a startling impact not only upon pension plan sponsors, participants, and beneficiaries, but also upon the myriad group of individuals and institutions providing services,advice, and counsel to the pension industry. This article primarily will consider the new law as it affects the fiduciary, creating new responsibilities and increased liability. Several areas in which the new law creates special problems then will be considered.

Federal Regulation Of Retirement Plans: The Quest For Parity, William J. Chadwick, David S. Foster

Vanderbilt Law Review

An analysis of the regulatory scheme behind the varied treatment of retirement plans reveals that many of the distinctions made are not justifiable. For example, an incorporated, one-man law firm with net income of $125,000 can make a deductible contribution to a money-purchase pension plan of $25,000. If the lawyer conducted his practice as a sole proprietorship, however, his annual deductible contribution would be limited to $7,500. The form in which the lawyer conducts his business determines the tax burden that he must assume in providing for his retirement. Thus, retirement parity remains unachieved, even after a comprehenisve revision of …

Stockholder Attacks On Corporate Pension Systems, F. Hodge O'Neal

Vanderbilt Law Review

This article considers the legal issues raised when a corporate pension system is attacked by minority stockholders. These issues perhaps best can be delineated by focusing attention on a representative fact-situation.