Employment Law & Statistical Analysis

Employee Benefits Compliance

Fairfax, Virginia Law Firm Providing Employee Benefits Regulatory Counsel

Single employers and plan sponsors act as a fiduciary when administering pension benefit plans. As a result, single employers are required to act in the best interests of beneficiaries when investing, disbursing, and handling pension benefit funds.

The Sparlin Law Office, PLLC counsels and represents single employers in regulatory matters pertaining to the administration of pension benefit plans and compliance under applicable state and federal law.

We review processes and procedures, contractual arrangements, and specifics of plans to ensure our clients comply with the law and avoid legal complications. We review severance package plans and investments to determine if a conflict of interest or threat of dual agency exists.

Failure to comply with state and federal regulations can result in significant penalties, fines and even exposure to class action liability. If you are unsure of the scope of your fiduciary duties or want to ensure you are in compliance with the law, contact an employee benefits lawyer at the Sparlin Law Office today.

The Duties of a Fiduciary

Litigation often arises in matters related to the administration of pension funds when allegations of prohibitive transactions or the violation of one's fiduciary duty arise. As fiduciaries, single employers are required to observe the following in regard to the administration of pension plan benefits:

• Administrators must act in the interest of the beneficiary
• The actions of plan administrators must be disclosed whenever said actions have a material consequence for the plan
• As fiduciaries, plan administrators cannot place their own interests over and above those of plan beneficiaries
• Actions opposed to the interests of plan beneficiaries must be disclosed and permission obtained from them before a fiduciary can act accordingly
• Plan administrators, as fiduciaries, are expected to comply with and adhere to the professional standards of their profession and provide a maximum level of protection and information to beneficiaries
• A fiduciary cannot act as a dual agent. Consequently, single employers cannot invest in companies that are owned or operated by board members, employees, or others with a vested interested in both companies.

The Pension Benefit Guaranty Corporation and Multi-Employer Plans

The Pension Benefit Guaranty Corporation (PGBC), created by ERISA, is tasked with paying pension benefits on privately funded pension plans. When a pension plan terminates, the PGBC and the IRS may have claims arising from any under-funding of the plan that occurred prior to termination.

Attorney Dean Sparlin has a significant experience dealing with these agencies and defending employers in bankruptcy proceedings who face PGBC and IRS demands arising from plan terminations.  

Preventing Legal Problems Before They Arise

We review single-employer plans and help companies avoid legal difficulties that could lead to litigation or fines. We review contractual arrangement and plan designs to ensure single employers are acting as they should in disclosing information, investing appropriately, and managing plans as indicated.

If you have questions regarding your fiduciary obligations and would like a compliance audit of your plan administration or plan design, contact an employee benefits attorney at the Sparlin Law Office today.