The establishment of prudent processes is a fundamental element of appropriately discharging fiduciary duties under ERISA. Where a committee acts as the primary plan fiduciary, a written committee charter will typically form the basis for all committee operations. The committee charter effectively provides the “by-laws” and operating guidelines that will govern how the committee discharges its obligations. The Charter’s Role Charters will typically address how committee members will be appointed and replaced, term limits, quorum,…
Where you have employer subsidized self-insured medical benefits being provided to highly compensated individuals (“HCIs”) after employment and that subsidy is only offered to HCIs, you run the risk that the actual medical benefits provided (not the premiums) may be taxable to the executive under 105(h). Â