Risk Management – Not Litigation

The Employee Retirement Income Security Act (ERISA) contains specific rules on how employers are to initially respond to a dispute regarding retirement income. These rules must be followed in a precise manner.

Employers and employee groups, including unions and multi-employer plan trustees often turn to John Koss to mediate conflicts that arise with regard to employee benefits plans.

Consulting with Mr. Koss before problems arise often prevents unforeseen difficulties, difficulties that include tough questioning by confused participants, threats of litigation, adverse Department of Labor or IRS audits and, perhaps most compelling, increased personal liability of plan fiduciaries. Consulting with Mr. Koss can avoid or at least prepare plan sponsors and fiduciaries for participant questions such as:

  • My monthly pension amount can’t be correct. The benefit statements from the last few years show a much higher benefit. Did the conversion to a cash balance plan really make that much difference? I hope not.
  • Sharon and I have been here for the same number of years. Why is her pension larger than mine?
  • Mr. Smith told me at the time of the merger back in 1987 that my 22 years of service with the Smith Company would be counted towards my pension. Why wasn’t it?
  • As Robert’s lawful surviving spouse, I should be entitled to his pension. Why am I not?
  • Why is my 401(k) balance so small? How much of my return was eaten up by fees? Who negotiated the contract with the mutual funds, anyway?
  • I really feel forced into this early retirement incentive program. After all, I’ve been here 32 years, so I want to know my options.
  • You should have told me about the early retirement incentive program before I retired last year. I want you to recalculate my retirement benefit as if I retired under the program.
  • You should have counted my 18 years of service as member of the XYZ union plan, before I joined management.
  • Why didn’t you tell me about the taxes I would have to pay on the lump sum benefit I received last year?

Examples of areas that can be complex and troublesome for plan sponsors and administrators include:

Design – Ensuring that employee benefit plans meet nondiscrimination requirements. Examples include converting a defined benefit plan to a cash balance plan or establishing a voluntary early retirement plan.

Administration – Reviewing documentation, internal procedures, and notifications of participants to ensure compliance with the changing regulations and rulings. Examples include updating summary plan descriptions and monitoring third-party service providers such as mutual fund 401(k) administrators.

Reporting and Disclosure – Monitoring requirements relating to annual government reporting (for example, Form 5500) and required disclosures and notifications to participants and beneficiaries (such as those required by HIPAA).

Of course, all consulting, auditing and mediation services are performed with the assurance of maximum confidentiality. If Mr. Koss collaborates with in-house counsel, every effort is made to assert the attorney-client privilege, as appropriate.

To discuss particular employee benefits claims and conflicts, and how Mr. Koss’s employee benefits mediation services may offer distinct value to the employer, contact the office of John Koss.