The court ruled that the plan administrator's decision did not violate ERISA's
nonforfeitability provision.
f) Must satisfy consumer protection provisions, disclosure, and
nonforfeitability requirements as set forth by the National Association of Insurance Commissioners (NAIC).
In addition, the contract must satisfy certain consumer protection provisions concerning model regulation and model act provisions, disclosure, and
nonforfeitability.
142) If, for instance, qualified defined benefit plans were bound by vesting schedules providing for 100%
nonforfeitability of accrued benefits after eighteen months of service, (143) then workers, particularly those who frequently separate from their employers, whether voluntarily or involuntarily, will enjoy an increase in retirement savings.
A "qualified" long-term care insurance contract: (1) must provide only coverage for "qualified long-term care services"; (2) cannot pay or reimburse for services covered under Medicare; (3) must be guaranteed renewable; (4) cannot provide a cash surrender value; (5) must apply premium refunds or dividends to either reduce future premiums or increase future benefits; and (6) must satisfy consumer protection provisions, disclosure and
nonforfeitability requirements as set forth by the National Association of Insurance Commissioners (NAIC).
1) The courts reasoned that a fraud exception to the
nonforfeitability provisions of ERISA Section 203(a) and IRC Section 411(a) would be improper.
the contract satisfies certain consumer protection provisions concerning model regulation and model act provisions, disclosure, and
nonforfeitability.
This includes the
nonforfeitability requirements and the restrictions on distributions described in Regs.
The plan must meet the same requirements as apply to other qualified plans, with respect to coverage, nondiscrimination in contributions,
nonforfeitability on termination, rules regarding forfeitures, and rules relative to the source of contributions.
Although certain technical exceptions exist to the
nonforfeitability of vested benefits, but they are not relevant here.
Darden (24) is whether a life insurance agent should be considered an employee of the insurance company so that he or she may invoke this
nonforfeitability provision.
Vesting refers to the
nonforfeitability of employer contributions for covered employees.
