Although the employer's right to reclaim excess pension assets has been disputed, the courts have found that reversions are consistent with the spirit of ERISA, noting that the purpose of ERISA is to protect employees to the extent of promised benefits, not to provide pension windfalls just because a plan is overfunded
A second old-time bureaucratic trick is the fourth-quarter spending spree--the rush of each agency to dump excess funds before the fiscal year's end, lest it show a surplus and suggest that it's overfunded
. This is the time of year when the Park Service buys electric blankets for the rangers in the Everglades--anything to dump the dough.
The requirement that the service continue to pay billions of dollars into a pension account that is already overfunded
by billions of dollars is ludicrous - but that's the law, and the inequity needs to be fixed.
So if Wales is underfunded by say pounds 400m a year and Scotland is overfunded
by at least pounds 1bn, what should our tactics be?
In a recent report by the California Legislative Analyst's Office (LAO), several Superior Courts in California were identified as overfunded
, though long lines at many courts' filing windows and reduced hours seem to tell an entirely different story.
* Recognize in its statement of financial position an asset for a plan's overfunded
status or a liability for a plan's underfunded status.
However, health trusts in other parts of the country were overfunded
, the Commission said.
``Three or four years ago, the market was doing so well employers were told they did not have to put money in, as the schemes were overfunded
97-956 (9/15/98), the North Carolina Court of Appeals held that income from the return of funds from a company's overfunded
pension plan was nonbusiness income.
For example, should the trustees of an overfunded
plan compromise the extent of the plan's surplus by approving a merger with an underfunded plan?
Therefore, it is not surprising that throughout the 1980s many defined benefit plans became overfunded
Under certain circumstances, an employer withdrawing funds from an overfunded
pension plan must pay a 50% penalty tax on the reverted funds, even if they are used to enhance the security of other employee benefit programs.