An Excess Benefit Plan and Sections 3(36) and 4(b)(5) of ERISA

Co. v. Resolution Trust Corp., 848 F. Supp. 1515, 1519 (N.D. Ala. 1994) ("[B]ecause the limitations set forth in IRC Section 415 are not fixed, an employee benefit plan cannot serve the purpose of providing benefits in excess of these limitations without expressly referring either to IRC Sectio...

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Bibliographic Details
Published in:Journal of deferred compensation 2024-10, Vol.30 (1), p.28-68
Main Author: Mcneil, Bruce J
Format: Article
Language:English
Subjects:
Agreements
Breach of contract
Compensation plans
Corporate presidents
Employees
ERISA
Federal court decisions
Retirement income
Retirement plans
State laws
Wages & salaries
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Summary:Co. v. Resolution Trust Corp., 848 F. Supp. 1515, 1519 (N.D. Ala. 1994) ("[B]ecause the limitations set forth in IRC Section 415 are not fixed, an employee benefit plan cannot serve the purpose of providing benefits in excess of these limitations without expressly referring either to IRC Section 415 or its substantive provisions.") In light of the foregoing, the court could comfortably conclude that the Plan concluded between the parties was not "an excess benefit plan" enacted solely to avoid the contribution limits of Section 415 but rather a benefit plan for a high- value employee-a bank President and CEO-created as a means to entice the individual to remain in his post and subject to ERISA's enforcement provisions. See Singh v. Prudential Health Care Plan, Inc., 335 F.3d 278, 292 (4th Cir. 2003) (citing Darcangelo v. Verizon Communications, Inc., 292 F.3d 181, 195 (4th Cir. 2002) ("when a claim under state law is completely preempted and is removed to a federal court because it falls within the scope of § 502, the federal court should not dismiss the claim as preempted, but should treat it as a federal claim under § 502.") [...]the plaintiff was given thirty (30) days from the filing of the Order in which to amend his Complaint.
ISSN:1083-6276