A federal appellate court agreed with the Commissioner of Internal Revenue that Pizza Pro Equipment Leasing incorrectly calculated the limitation on the plan’s annual benefit and therefore made non-deductible contributions to the plan.
The 9th Circuit depended on its own precedent in finding that unpaid contributions to employee benefit funds are not plan assets and, therefore, the company owners are not fiduciaries under ERISA with respect to unpaid withdrawal liability.
The appellate court disagreed with a district court conclusion that the multiemployer plan had not shown sufficient continuity of business operations to support successor liability.
The lawsuit filed by MBA Engineering on behalf of its 401(k) and cash balance plans also accuses Vantage Benefits, MBA's TPA and recordkeeper, of stealing money from approximately 20 other retirement plans.
In addition, a federal judge dismissed a third complaint against NYU—naming its adviser as a defendant—as a duplicative action.
“IHI cannot delegate fully its statutory responsibilities under ERISA,” a federal judge says in her opinion.