| In re: Halpin: The 2nd Circuit Weighs in on Plan Assets and Fiduciary Liability |
| Thursday, 28 May 2009 18:59 |
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The U.S. Court of Appeals for the Second Circuit decided on May 11, 2009 in the case of In re: Halpin, et al. that contributions an employer owes to a group of multiemployer benefit plans are not plan "assets" and, as such, the employer's owner is not a fiduciary over these contributions. Therefore, the owner is not personally liable for their non-payment. The Court found that the employer's obligation to pay contributions to the Funds established a debtor-creditor relationship, rather than a fiduciary relationship under ERISA. Finally, the Court noted in the case, the absence of provisions in the relevant plan documents that stated that unpaid contributions are assets of the Plan. Please contact one of our attorneys at 631-249-6565 to dicuss the impact of this decision on your fund. |