Non Qualified and Qualified Executive Compensation Plans and ERISA

When a disability benefit plan falls under the jurisdiction of ERISA, the court will consistently uphold the necessity of exhausting administrative remedies. Some disability insurance companies may only offer two opportunities to contest the decision. Others offer three and even four opportunities to appeal the decision to deny or terminate long-term disability benefits.

He found that the records failed to support Blackwell's inability to continue work as a vice president of quality management. He recommended that the claims handler order an IME and a functional capacity evaluation (FCE) to guarantee a full and fair review of Blackwell's claim.im.


The Employee Retirement Income Security Act, or ERISA, was passed in 1974 to protect workers who are retiring or need to collect benefits from their employers. The law was introduced as a motion to regulate the laws regarding employee benefits, and has spawned a series of amendments and subsequent laws. In general, ERISA can be referred to in a more expansive sense, as the law is usually used to represent any workers' benefits legal problems. However, the Internal Revenue Code also contains several similar provisions for benefits and compensation.

When you do bring up your claim, make sure your physician understands the correct definitions of disability under your policy. What your doctor considers "disabled" may be different than the definition of "disabled" according to your insurance policy.

ERISA significantly affects the administration and litigation of disability insurance claims. Unfortunately, ERISA deprives insureds of significant rights to which they would normally be entitled under state law. These include the right to a trial by jury and the possibility of punitive damages where the insurance company has acted unreasonably or maliciously.

Even if a professional has paid his or her disability insurance premiums through the practice, it may still be possible to escape ERISA if the professional can meet all of the requirements of ERISA's "safe harbor" provision. This provision excludes from ERISA employee benefit plans for which (1) no contributions are made by the employer, (2) participation in the program is completely voluntary for employees, (3) the sole role of the employer is to permit the insurer to publicize the program to the employees, to collect premiums through payroll deductions, and to remit them to the insurer, and (4) the employer receives no consideration from the program other than reasonable compensation for its administrative services in connection with the payroll deductions.

Liberty Life Assurance Co. of Boston, District Courts have found that the most appropriate guide for pre-judgment interest is Section 28 U.S.C. 1961, which prescribes post-judgment interest.

There are a few reasons why a business would choose this type of plan over others, but the main factor is usually cost. It costs less to manage a self-insured policy than it does to enter fully into a contract with a larger provider.

Fortunately, ERISA requires that any business providing this type of insurance make available a Summary Plan Description (SPD). The SPD is a document that will lay out all of the guidelines and processes that you can follow in order to utilize your health benefits.

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