Benefits Bryan Cave

Main Content

Major League Baseball Pension and Healthcare Benefits

August 30, 2011

Categories

Major League Baseball Pension and Healthcare Benefits

August 30, 2011

Authored by: benefitsbclp

Arguably, Major League Baseball (“MLB”) offers one of the best pension and healthcare programs in all of sports. Players vest in their pensions after 43 days on the active roster and just one day qualifies a player for lifetime healthcare. Playing isn’t even a requirement, benchwarmers may qualify for benefits as well. After 43 days, players qualify for the minimum benefit of $34,000 per year and those with 10 years of service receive a pension of approximately $100,000 annually. In 2010, the MLB Players’ Pension Plan reported assets of over $1.3 billion for approximately 8,200 participants.

However, these generous benefits have not always been available. While baseball players first obtained a pension in 1947, some claim the plan was very poor. Pension plan vesting and lifetime healthcare required four years of service. Over the years the MLB Players’ Association negotiated higher benefits and won more concessions in the

WSJ Renewed Interest in Target-date Funds

August 30, 2011

Categories

WSJ Renewed Interest in Target-date Funds

August 30, 2011

Authored by: benefitsbclp

According to a recent article in the Wall Street Journal, some employers are taking a hard look at their 401(k) plans’ target-date investment funds.  These funds target a future year geared to the expected retirement date selected by the participant.  They attempt to simplify investing for the average participant by gradually adjusting the asset allocation over time by moving away from equities toward fixed income investments, becoming more conservative, as the target date approaches.  This approach accepts more volatility in hopes of obtaining larger gains at younger ages and less volatility and opportunity for gain as retirement and the need to use the money approach.

While these fast growing funds became popular by offering a convenient one-size-fits-all choice for investors, recent criticisms imply simpler might not always be better.  The 2008-09 financial crisis and the recent 2011 volatility highlight that target-date funds simply offer investors a different (though usually more

Seventh Circuit Overturns Dismissal of Collusive Trading Action Brought By AnchorBank

August 24, 2011

Categories

Last Friday, the Seventh Circuit issued an opinion overturning the lower court’s dismissal of a lawsuit brought against Hofer, an employee of AnchorBank, alleging  that, along with two other employees, Hofer engaged in a collusive trading scheme in violation of Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 (“1934 Act”).  The two other employees settled with AnchorBank before the lawsuit was filed.

In its second amended complaint, AnchorBank alleged that Hofer and his two co-conspirators coordinated their purchase and sale of units in the AnchorBank Unitized Fund (“Fund”), which was an investment option in the AnchorBank 401(k) plan that held cash and company stock.  The alleged scheme involved the coordination of the sale of Fund units, triggering a payout from the Fund’s cash reserves to the suspected co-conspirators.  Since the trustee was required to maintain a particular cash-to-stock ratio in the Fund, it was then forced to