Browsed by
Category: Newsworthy Pension Cases

Follow Your Pension Plan’s Pension Beneficiary Instructions; Otherwise THIS Unfortunate Result Could Happen

Follow Your Pension Plan’s Pension Beneficiary Instructions; Otherwise THIS Unfortunate Result Could Happen

A recent Court of Appeals case highlights the importance of carefully following the beneficiary instructions in your 401(k) plan. Gelschus v. Hogen, No. 21-3453, (8th Cir. Aug. 29, 2022). Here’s what happened in that case. Sally Hogen was a participant in Honeywell International Inc.’s 401(k) plan. She originally designated her husband Clifford as the sole beneficiary of her 401(k) account in the event of her death. But Sally and Clifford divorced in 2002, and their marital termination agreement (MTA) said…

Read More Read More

Are Your Contributions to Your 401(k) Plan Protected From Creditors in a Bankruptcy Proceeding?

Are Your Contributions to Your 401(k) Plan Protected From Creditors in a Bankruptcy Proceeding?

The answer depends. But, here’s how the Sixth Circuit Court of Appeals answered that question in Davis v. Helbling (In re Davis), No. 19-3117, 2020 U.S. App. LEXIS 17223 (6th Cir. June 1, 2020). In 2017, Camille Davis filed a bankruptcy petition under Chapter 13 of the U.S. Bankruptcy Code. Chapter 13 gives individuals with a regular source of income the opportunity to propose a plan of repayment to their creditors while under the bankruptcy court’s protection. When Davis filed…

Read More Read More

Widow’s Release Of Claims Against Deceased Husband’s Estate Did Not Extinguish Her Right To His Pension Account

Widow’s Release Of Claims Against Deceased Husband’s Estate Did Not Extinguish Her Right To His Pension Account

It makes me sad to learn when heirs fight over a decedent’s assets, especially when it involves a widow’s surviving spouse pension benefits, as occurred in Goins v. Tona L. Goins & Nat’l Elec. Annuity Plan, No. 16-cv-01281, 2017 U.S. Dist. LEXIS 71387 (S.D. Ill. May 10, 2017). In Goins, Robert Goins passed away and was survived by his wife Tona Goins and two adult sons who were Tona’s step sons. Sometime after Robert’s death, a dispute arose between Tona…

Read More Read More

Underfunded Pension Plans; The PBGC; And What The Heck Got Us Into This Pension Funding Mess?

Underfunded Pension Plans; The PBGC; And What The Heck Got Us Into This Pension Funding Mess?

You would need to be asleep at the wheel to not know we are in a pension funding crisis. Hardly a day goes by when we do not hear about a pension plan that reduces or freezes future benefit accruals to lessen its funding shortfall, or that is predicted to become insolvent in the foreseeable future notwithstanding such benefit adjustments. Participants in these underfunded plans naturally worry that they will lose their hard-earned pension benefits. If the plan is in…

Read More Read More

Untitled 1