Excellent Tips to Help You Get the Most Out of Your 401k

Occasionally, I offer information on this blog outside of the topic of disability area that I think may be helpful.  A large part of our practice involves ERISA, the Employee Retirement Income Security Act of 1974.  ERISA is the federal law that regulates your employee benefits if you work (or worked) for a private (non-government or church) employer. We have many clients that come to us with pension and 401k issues.  Recently, Forbes.com offered a very interesting article on key mistakes that employees make with their 401k plans.

Forbes' contributor, Michael Chamberlain, offers the following list of mistakes that people often make in relation to the 401k offered by their employer:

1. Not participating in the plan at all.
2. Failing to contribute adequate percentages to get the company match.
3. Not understanding how much needs to be contributed to have the desired retirement income.
4. If the participant does understand how much should be contributed, failing to put that level into the plan.
5. Not understanding the level of risk in the investments selected.
6. Taking too much risk or too little risk with the investments.
7. Thinking that the “education” provided by the financial services company associated with the plan is investment advice.
8. Believing that if one target date fund is good, thinking that investing in two or more would be better.
9. Not understanding the costs of the 401(k).
10. Putting too much into company stock.
11. Borrowing from the 401(k).
12. Cashing out the plan when changing jobs.
13. Rolling over the 401(k) at retirement into an IRA with a broker-dealer who takes large commissions out of the account on the sale of new investments.

Chamblerlain also points out key mistakes that sponsors (the ERISA term for employers and unions) make that cause problems for 401k plans and their participants.

All in all, it is a short read, but well worth it if you participate in a 401k, have a family member that participates in a 401k or you may be eligible to participate in a 401k.

If you need assistance with an ERISA claim, including pension and 401k problems, please call Florida ERISA Attorney John Tucker at (866) 282-5260.

What is a Life Insurance Waiver of Premium Based on Disability?

If you have a life insurance plan through your employer and you become disabled, you may be able to keep your life insurance without paying premiums. How? Something called a premium waiver due to disability.

Some group life insurance plans - including many covered by the federal ERISA law that governs employee benefits - have a provision that allows disabled employees to keep their life insurance coverage. Some refer to these provisions as Life Insurance Waiver of Premium (shorthand: LIWOP). Many people know about their Long Term Disability (LTD) insurance coverage. However, you may also have a waiver of premium provision in your life insurance policy that kicks in based on your disability. Even if you do not have LTD coverage, you may be able to file an application with your life insurance benefits plan administrator asking that your coverage be continued. If you have have LTD coverage, you probably still have to file a separate application with the life plan administrator. Sometimes that will be the insurer, but you can ask your employer or the sponsor of your group life plan for the application for benefits.

Why is a Life Insurance Premium Waiver valuable coverage? Because it means you get free life insurance if you can prove that you are disabled under the plan's definition of disability. There is no standard definition. You have to read the life insurance policy to determine what you have to prove to show that you are disabled. If you have LTD coverage, the definition of disability in your LTD plan may be different than the definition of disability in your Life Insurance policy.

It is strongly recommended that you hire an ERISA Disability Attorney if you think you may hav a Life Insurance Waiver of Premium claim. Hiring an attorney before you file your claim may save you time and let you keep thousands of dollars of life insurance coverage....for free.



Copyright (c) 2011 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Florida ERISA claim, or Life Insurance Disability Premium Waiver claim, call Disability Lawyer John Tucker at (866) 282-5260.

What is an ERISA Summary Plan Description and How Do I Get Mine?

If you have benefits through work, your employer or union benefit plan is required by law to have a document that summarizes the key terms of the benefit plan. The law is called ERISA, the Employee Retirement Income Security Act. The summary is just that, a summary of the rules of the Plan. However, the law does not require that they give you a copy of the full rule book. Instead, that have to give you a summary, called the Summary Plan Description (abbreviated as “SPD”). You only get a copy if you ask for it, and the administrator of the ERISA Plan has 30 days to give you a copy of the SPD.

If you ever have to make a claim for benefits under your employer's or union's plan, be sure to get a copy of the SPD. It tells you what benefits are offered under the Plan, as well what the qualifications are to get the benefit you are seeking. We recommend that you ask for both the Plan Document and the Summary Plan Description to make sure you know all of the rules that apply to your Plan. Send a letter to your employer and the administrator (for example, the Plan's insurance company) asking for these documents by certified mail or some other method you can track (like overnight delivery carriers with tracking numbers). If they do not send you the documents within 30 days, send a second copy of the letter by overnight deliver with a tracking number. If they still don't send you the documents, call an ERISA attorney.

Copyright (c) 2011 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim or ERISA Disability benefit claim, call Florida ERISA Disability Lawyer John Tucker at (866) 282-5260.

What is an ERISA Plan?

An ERISA Plan is a group benefit plan that is subject to the federal ERISA law. That is any benefit plan offered by a private employer, not a government or a church.

An ERISA Plan may also refer to the document that spells out the benefit plan's terms.

If you are making a claim under your employer's ERISA benefit plan, be sure to read the plan's terms to see if you qualify for benefits. Courts enforce the language in ERISA Plans to the letter. You will not know what you have to show to get the benefit you are seeking if you do not know the terms of the Plan.

If your ERISA claim is denied, you should immediately contact an attorney that handles ERISA claims and lawsuits to assist you with your appeal. Your ERISA Plan should spell out the claim appeal procedures. However, it likely will not tell you that you have to appeal to the administrator before you can file a lawsuit. It also will not tell you that if you fail to get all of the evidence submitted that you will want considered in a lawsuit, then you will not be allowed to submit the evidence in court. You may feel you can appeal your claim on your own, but we recommend that you at least get an opinion from an ERISA lawyer before you submit the appeal to make sure you are doing what you need to do.

Copyright (c) 2011 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim or ERISA Disability benefit claim, call ERISA Disability Lawyer John Tucker at (866) 282-5260 for a free consultation.

What is ERISA?

ERISA is a federal law passed by Congress in 1974 to regulate employee benefits offered by private employers. ERISA stands for the Employee Retirement Income Security Act. Congress passed the law to protect employee pensions and to encourage employers to offer welfare benefit plans like disability insurance, health insurance, life insurance and long term care insurance. Other fringe benefits like on-site day care and pre-paid legal plans are included too.

Congress passed ERISA under its power to regulate interstate commerce. With some exceptions, ERISA allows employers to offer employee benefits subject to one law, not the laws of 50 different states.

Copyright (c) 2011 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. If you need an ERISA attorney in Florida or anywhere in the United States, call ERISA Lawyer John Tucker at (866) 282-5260 for a free consultation.

Having trouble concentrating, focusing or remembering? Be sure to tell whoever is deciding your disability claim.

I am often told by my clients that their inability to concentrate, focus, and poor memory plays a major role in why they cannot work. Perhaps it is their pain or other symptoms. It may be side effects from medications. No matter what the cause is, I cannot stress enough how important concentration, focus, and memory problems are to proving that you are disabled. Do NOT downplay these problems to anyone.

Whether you are applying for Disability Insurance, ERISA, or Social Security Disability/SSI benefits, you need to make sure the decision-maker knows about any problems you have with concentration, focus, and memory. Why? Because jobs require you to be able to keep on task and remember things. If you cannot focus on what you are doing, you cannot make decision or carry out tasks. If you have memory problems, you likely will have problems following instructions or making sure you go through every step in a process.

The Social Security Administration calls these things "non-exertional impairments," and their disability rules say:

§404.1569a (c) Nonexertional limitations. (1) When the limitations and restrictions imposed by your impairment(s) and related symptoms, such as pain, affect only your ability to meet the demands of jobs other than the strength demands, we consider that you have only nonexertional limitations or restrictions. Some examples of nonexertional limitations or restrictions include the following:

(i) You have difficulty functioning because you are nervous, anxious, or depressed;

(ii) You have difficulty maintaining attention or concentrating;

(iii) You have difficulty understanding or remembering detailed instructions;

One of Social Security's internal rulings says:

Mental limitations or restrictions: A substantial loss of ability to meet any one of several basic work-related activities on a sustained basis (i.e., 8 hours a day, 5 days a week, or an equivalent work schedule), will substantially erode the unskilled sedentary occupational base and would justify a finding of disability. These mental activities are generally required by competitive, remunerative, unskilled work:

• Understanding, remembering, and carrying out simple instructions.
• Making judgments that are commensurate with the functions of unskilled work--i.e., simple work- related decisions.
• Responding appropriately to supervision, co- workers and usual work situations.
• Dealing with changes in a routine work setting.

That means that Social Security may consider you disabled even if you still have physical abilities, but have serious problems with your concentration and memory. While these rules do not apply to insurance companies, the same concepts apply.

So what do you do?

• Be sure to list these kinds of problems on any forms you fill out for the disability insurance company, Social Security, or the Department of Veterans Affairs;
• Tell all of your doctors about these problems;
• If you think these problems come from your prescription medicine(s), tell your doctors that you are having side effects from the medicine and describe the side effects; and
• If the insurance company, Social Security, or the VA sends you for an examination, be sure to explain the problems you are having with concentration, focus, and memory; and explain if these problems are side effects from your medicines or are caused by pain or other symptoms.

Copyright (c) 2011 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

As Union Ranks Drop, More Employers are Providing Disability and Health benefits, So You Better Know What ERISA Is.

The U.S. Bureau of Labor Statistics released a report that that union membership in the United States continues to decline. It is more important than ever to understand ERISA - the federal Employee Retirement Income Security Act, because the vast majority of employee benefits are being provided by employers. ERISA was passed in 1974 after 10 years of study to reform the nation's pension system. When the law was finalized, ALL employee benefits - not just pensions - were incorporated into ERISA's framework. Even when employers make you share in the cost of coverage, it is covered by ERISA. Today, that means that workers (and many small business owners that join their employees in company sponsored disability, health, and life insurance plans) must live with the harsh aspects of ERISA.

Why is ERISA so harsh? If you submit a claim under your group disability, health, or life plan (or your pension), there are very short and strict time deadlines that apply to many aspects of your claim. Depending on the type of claim, you may have as short as 2 days and no more than 180 days to file an appeal. What many people do not know is that any appeal under most ERISA plans must include all (yes, ALL) of the evidence you ever would want a court to consider. That's right, if you have to file suit, the court will only look at the evidence in the insurance company's claim file in most cases.

You don't even get a jury in court. You get a federal judge looking at a pile of paper. The method the judge has to use is so convoluted that even most lawyers don't understand it. If you win, you might (yes, MIGHT) get your attorney's fees paid, but in many cases you won't. Often, the claimant is left holding the bag for the cost of proving you were right to begin with. To say that ERISA is slanted towards insurance companies, employers, and yes - unions, would be an understatement.

The government's report revealed that union membership fell to 11.9 percent of U.S. workers in 2010. That means that 612,000 left union ranks last year, now down to 14.7 million members.When ERISA was passed, many unions provided health and disability coverage, in addition to retirement pensions. Unions used to sponsor and pay for their own benefit plans. Most employers just buy insurance and pay an insurance company to run their plans. Today, at least one major union has sold off its health plan to an employer, and others are not offering these types of benefits at all. As unions become less and less of a factor, employees are more dependent than ever on employers getting good coverage and finding administrators that will fairly enforce the benefit plan's rules. Unfortunately, many insurance companies do not treat claims fairly, and claimants have to know when to appeal.

If you have a group benefit claim denied, call an attorney that handles ERISA claims. Ask how many ERISA cases that lawyer has handled. Make sure they know ERISA. If they don't, it could cost you a lot of money.




Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

What is ERISA?

What is ERISA?

ERISA stands for the Employee Retirement Income Security Act, a federal law passed by Congress in 1974. President Nixon signed ERISA into law after 10 years of study designed to reform the nation's pension system.

Congress ultimately included employer-provided insurance benefits as part of the law. That is why most Short Term Disability, Long Term Disability, Health, and Life Insurance benefits that are offered by private employers are covered by ERISA. ERISA applies only to employee benefits provided by private employers. If you work for a government entity or a church, ERISA will not apply to your claim. However, any private employer (even a small company with only one employee other than the owner) that provides employee benefits will be subject to ERISA.

With certain exceptions, ERISA creates one uniform system to administer these group benefit programs sponsored by employers. However, this “uniform system” is far from uniform. The law actually allows employers to establish nearly any type of benefit plan they wish, as long as they provide certain documents to employees and allow for an appeal when benefits are denied.

No matter which lawyer your hire, if you have a group benefit claim covered by ERISA, make sure your lawyer has experience handling ERISA cases. There are many differences between ERISA cases and insurance claims regulated by state laws, and if you or your lawyer do not know those differences and how to handle them, it can hurt your case. ERISA Attorney John Tucker is an experienced attorney who has handled over 1000 ERISA benefit claims of all types, including disability insurance, health insurance, life insurance, accidental death, 401k, and pension cases.

Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

ERISA & Insurance Attorney John Tucker Elected Treasurer of AAJ ERISA, Health and Disability Insurance Litigation Group

Tampa Bay: Attorney John Tucker was elected Treasurer of the ERISA, Health and Disability Insurance Litigation Group of the American Association for Justice (AAJ) at its Annual Convention in Vancouver, British Columbia on July 10, 2010.

Mr. Tucker's main office is located in Clearwater, Florida, and he has a national practice in ERISA and Disability Insurance claims and litigation. He is a frequent lecturer and author on ERISA (the federal law that governs employer-sponsored group benefits), Disability Insurance, and disability benefits.

Tucker Ludin - Legal Solutions is a leading disability benefit law firm, providing comprehensive representation to those making claims or litigating in the areas of ERISA, Short Term Disability and Long Term Disability benefits, Individual Disability Insurance, Social Security Disability and Veterans (V.A.) Disability Compensation.


Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

Retirees' Bankruptcy Protection Act Applies Over ERISA According to Federal Appeals Court

In a ruling that will apply to all types of retiree employee benefits, a federal appeals court has ruled that a corporation in bankruptcy may not terminate retiree health and life insurance plans unless the company can show that terminating a plan is a necessary part of its reorganization. Even if the language of its benefits plans reserves the right to terminate the plan to the company, it will have to continue the benefit plan(s). The case, In re: Visteon Corp., required the court to determine whether the Retiree Benefits Bankruptcy Protection Act ('RBBPA') should be applied over ERISA, the Employee Retirement Income Security Act, the main federal law that governs employee benefits. The Third Circuit Court of Appeal held that the bankruptcy law applied to all employee benefits. In applying the RBBPPA, the court concluded that Congress meant to give special protection to retired employees in the bankruptcy process.

Comment: This is a significant ruling. Previously, the lower courts that considered this issue allowed employers to terminate their benefit plans whether or not they could show that plan termination was a necessary part of a reorganization. The decision is being hailed as a victory for labor, because the longstanding view was that an employer with a plan that had language which allowed termination in its terms could basically end the plan any time the employer desired. It would not be surprising to see this issue decided by the U.S. Supreme Court in the future.

For the complete story about the case, visit Law.com.

Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

Disability Attorney John Tucker Lectures at AAJ National Convention in Vancouver

Florida attorney John Tucker delivered a lecture titled Social Security Benefits as an Offset to Long Term Disability Benefits at the American Association for Justice ('AAJ') Annual Convention in Vancouver, British Columbia on Sunday, July 11, 2010. Mr. Tucker's lecture focused on the impact of Social Security Benefits on the benefits disabled people receive under private Disability Insurance policies and ERISA Disability benefit plans. 'ERISA' stands for the Employee Retirement Income Security Act of 1974, the federal law that governs employer group insurance and pension plans.

Many attorneys and disability claimants do not realize that Social Security Disability benefits are often deducted from payments made under Disability Insurance and ERISA benefit plans. Interpretation of insurance policy and plan language play a big role on how and when these offsets are taken.

Mr. Tucker concentrates his practice on representing individuals in Individual Disability Insurance, ERISA Disability, Social Security Disability and Veterans Disability Compensation claims and lawsuits. Mr. Tucker is a frequent author and lecturer on topics related to disability insurance and other disability benefits. His recent speaking engagements include lectures and panel presentations delivered to the American Bar Association, the National Association of Disability Representatives, AAJ, and the Florida Justice Association.

Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

Nortel Networks Announces It Is Terminating Long Term Disability Payments to U.S. Employees

Nortel Networks, once a strong player in the telecommunications market with over 8000 employees, has announced that as part of its bankruptcy it will terminate Long Term Disability, retiree and other benefits to employees in the United States on August 31, 2010. The company also announced that it will terminate the employment of those employees receiving Long Term Disability benefits.

Unfortunately, ERISA - the Employee Retirement Income Security Act, the federal law that governs employee benefits - offers no protection for people who make Long Term Disability ('LTD') claims under an employer's self-funded LTD plan if the employer later goes bankrupt. Compared to an insured plan where an employer buys a group insurance policy to pay claims, self-funded ERISA plans are paid from a company's general funds. Although pensions have some limited protection under ERISA, other benefits like Long Term Disability plans typically do not survive bankruptcy.

If one can afford it, it is almost always better to supplement any company funded disability or life benefits with private insurance policies. Having a private policy gives piece of mind to an employee that they will still have disability or life insurance, even if their employer goes bankrupt.

Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

MetLife announces that it is getting into the managed disability/health market....Probably not a good sign for employees.

On June 10, 2010, MetLife issued a press release announcing that it is marketing an "integrated" disability and health program to employers. This would be offered as employer group coverage, and of course, it will be covered by ERISA - the Employee Retirement Income Security Act (the Federal law that governs employee benefits).

From my experience with my clients who are receiving Long Term Disability benefits, the more that insurance companies manage disability involves more active claims handling to get people back to work and to avoid paying claims. If more active disability claim management becomes a trend in the insurance industry, we should all expect more denied claims.

You can find the text of MetLife's press release on BusinessWire.

Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

Are My Disability Insurance Benefits Taxable?

Are my Short Term or Long Term disability insurance benefits taxable? As a general rule,

• If your employer paid the premium, then your disability insurance benefits are taxable.
• If you paid the premium using after-tax dollars, then your benefit is not taxable.
• If you paid only a portion of the premium using after tax dollars while your employer paid the rest of the premium, then the benefit is taxed proportionally.

If you need further information, you should seek and rely on tax advice from a professional accountant, tax preparer, or tax attorney concerning any tax matters.

Copyright (c) 2010 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

What is ERISA and How Does It Apply to Your Disability Claim?

What is ERISA? It is shorthand for the Employee Retirement Income Security Act, a federal law passed in 1974 that regulates employee benefits for all private employers (those which are not the government or a church).

What does ERISA have to do with your Short Term Disability ("STD") or Long Term Disability ("LTD") claim? If you have STD or LTD insurance through work, then ERISA applies to your coverage. If you have become disabled and have to file a claim, your claim is going to subject to ERISA. That means that you lose a lot of rights that people who buy individual STD or LTD coverage have under state law. The federal ERISA law allows federal courts, not state courts, to hear ERISA disability claims. ERISA also prohibits jury trials like you might get in state court. Finally, many states require insurance companies that lose disability cases in court to pay your attorney fees, but under ERISA, it is an option that the federal judge may require, but often does not.

Finally, the most important thing to understand about ERISA claims is what is called the "standard of review." This is the method a judge uses to review your claim if it goes to court. Under ERISA, most STD and LTD cases are reviewed under an abuse of discretion standard of review on motions submitted by both parties. There is no trial, and the judge has an obligation to uphold a denial if there is any reasonable basis for the insurance company's decision to deny the claim. Compare that to state court where a jury would get to hear from you and your doctors in a real trial if you have bought your own insurance from a local insurance agent outside of work. In fact, all of the evidence in an ERISA case gets created before a case is finally denied. If you have an ERISA claim, be sure to get all of your doctors records, opinion letters, forms and other information in support of your claim in to the administrator BEFORE you get the last denial letter. If you wait, you will not be able to get it into evidence in court.

In many ways, ERISA works in favor of plan administrators - usually an insurance company. You should hire an experienced ERISA attorney if you become disabled and have STD or LTD coverage through work.



Copyright (c) 2008 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. For assistance with your Long Term Disability claim, ERISA Disability benefit claim, Social Security Disability claim, or Veterans Disability compensation or pension claim, call Disability Lawyer John Tucker at (866) 282-5260.

DISABILITY TIP OF THE WEEK: How long do I have to appeal?

ERISA PLANS
Every disability insurance plan is different, but those that are governed by the Employee Retirement Income Security Act ("ERISA") must allow you an opportunity to appeal if your claim is denied. The letter denying your benefits must tell you how long you have to appeal. Usually you will have 180 days from the date of the denial letter to appeal. Once your plan administrator has received your appeal, it will have 45 days to render a decision. If necessary, your plan administrator can take an additional 45 days. If they take longer than 90 days, your attorney can advise you whether filing a lawsuit is advisable. In some instances, your insurance provider will pay you a lump sum "by exception" while they continue to review your claim beyond the 90 day deadline.

Most plans have a provision that requires a second appeal before filing a lawsuit. The deadline to appeal varies, but is often another 180 days. Again, the plan administrator can take 45 to 90 days to render a decision.

INDIVIDUAL POLICIES
Every individual policy has different deadlines. The letter denying your claim should tell you how long you have to appeal. Your policy will also have a provision that explains the appeal process and any deadlines.

SOCIAL SECURITY
If your claim for Social Security Disability benefits is denied, you are allowed 60 days to file an appeal from the date of the denial, plus 5 days for mailing. If you miss the deadline, you will be required to start the process over from the beginning. At the initial application phase, as well as after you have filed a Request for Reconsideration, the Social Security Administration can take anywhere from 3 to 6 months to make a decision. If your claim is denied after your Request for Reconsideration you again have 60 days plus 5 days for mailing to appeal.

REMEMBER: Every plan is different, whether governed by ERISA or not, so be sure to request a copy from your insurance carrier or employer. Pay close attention to the deadlines stated, or you could lose your chance to appeal or file a lawsuit.



Copyright (c) 2008 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. Any content borrowed or referenced from another source is referenced by citation to the original source as noted in the text above.

What is ERISA?

ERISA stands for the Employee Retirement Income Security Act, a federal law passed by Congress in 1974. President Nixon signed ERISA into law after 10 years of study designed to reform the nation's pension system.

Congress ultimately included employer-provided insurance benefits as part of the law. That is why most Short Term Disability, Long Term Disability, and other insurance benefits that are offered by private employers are covered by ERISA. Keep in mind that ERISA applies only to employee benefits provided by private employers. If you work for a government entity or a church, ERISA will not apply to your claim. However, any private employer (even a small company with only one employee other than the owner) that provides employee benefits will be subject to ERISA.

With certain exceptions, ERISA creates one uniform system to administer these group benefit programs sponsored by employers. However, this “uniform system” is far from uniform. The law actually allows employers to establish nearly any type of benefit plan they wish, as long as they provide certain documents to employees and allow for an appeal when benefits are denied.

There are many differences between group benefit cases covered by ERISA and individual insurance claims regulated by state laws. If you or your lawyer do not know those differences and how to handle them, it can hurt your case. ERISA is much less consumer-friendly than state insurance laws, and the insurance companies that administer ERISA plans hide behind its protections to deny many group disability benefit claims that would not be denied if they were individual insurance claims.

Copyright (c) 2008 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. Any content borrowed or referenced from another source is referenced by citation to the original source as noted in the text above.

UNUM Group to Pay $5.55 Million in Fines Over Hidden Fees

Fran Lysiak of Zibb.com reported that "Disability insurer Unum Group has agreed to pay $5.55 million in fines and penalties to the federal government for failing to disclose hidden fees it paid to a broker, the U.S. Attorney's Office for the Southern District of California said. The fees were required to be reported as called for under the Employee Retirement Income Security Act of 1974, prosecutors said." To read the full article, go to: http://www.zibb.com/article/3486232/Unum+Group+to+Pay+555+Million+in+Fines+Over+Hidden+Fees+to+Broker

ERISA is the law that regulates employee benefit plans offered by private companies in the United States. By agreeing to such a huge fine, UNUM provides us even more evidence of its disregard for the the U.S. Department of Labor's ERISA regulations. The U.S. Attorney's office found that UNUM was actively concealing the fees paid by UNUM for insurance commissions and disclosures related to group benefit plans. As the U.S. Attorney was quoted as saying, the regulations requiring disclosure, exist "to promote transparency." So much for transparency when the biggest disability insurance company simply ignores the rules and will only follow them when the government threatens prosecution.

To read more about ERISA, visit the ERISA law FAQ tuckerludin.com.


Copyright (c) 2008 by John V. Tucker and Tucker & Ludin, P.A. All rights reserved. Any content borrowed or referenced from another source is referenced by citation to the original source as noted in the text above.

Welcome to The Disability Law Firm Blog!

Welcome to The Disability Law Firm Blog! Thank you for visiting. My name is John Tucker. I am a Florida attorney based in the Tampa Bay area, and I am the managing shareholder of Tucker & Ludin, P.A. - The Disability Law Firm. We represent disabled and injured people all over the United States, though the majority of our clients are in Florida. Most of our practice involves helping people get different types of insurance and government benefits. The following are some of the types of benefits our law firm helps people fight to get:

• Disability Insurance benefits
  
• ERISA Disability benefits (employee group benefits)
• Life Insurance benefits
  
• Accidental Death benefits
• Personal Injury claims
  
• Social Security Disability benefits
• VA (Veterans) Service-Connected Disability benefits
  

I and other employees of our firm intend on posting various things of interest in the areas of disability benefits and disability law. As a disability attorney, I see my clients go through things that no one should have to face. The way my clients are treated by disability insurance companies and the government while they wait to get disability benefits they deserve is appalling. Feel free to comment about any posts that I offer. I have practiced as a disability attorney and as an ERISA attorney for over 16 years, and I have had the chance to work with nearly 2000 clients. I hope you find our comments helpful.