The Fidelity Bond vs. Fiduciary Insurance – Which one MUST you have?

The Fidelity Bond vs. Fiduciary Insurance – Which one MUST you have?

Clients sometimes get confused between a fidelity bond vs. fiduciary insurance. They are not the same thing. One is mandated, one is not.

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The Department of Labor Does Not Giveth But It Sure Can Taketh

By: David I Gensler, MSPA, MAAA, EA

Ever heard of the 2015 Inflation Adjustment Act? Well neither had I.  The act provides a formula as to how the Department of Labor should adjust its civil monetary penalties for inflation. The new civil penalty amounts will be applicable to penalties assessed after August 1, 2016 where the associated violation occurred on or after November 2, 2015.

These violations and their associated financial sanctions already exist under Title I of ERISA. However, the dollar amounts that may be assessed as financial sanctions have not changed in many years. What the Inflation Act does is update them for inflation. After this, in accordance with the Act, the sanctions will be adjusted annually for inflation.

So what are these violations and how much have the financial sanctions been increased? Read on:

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Murder’s Retirement Accounts Cannot Be Shielded: Is This Ruling Contrary to ERISA?

By: David I Gensler, MSPA, MAAA, EA

We all know that crime does not pay. But I always thought that no matter what crime you committed, that an individual’s retirement plan accounts were pretty much bullet proof. That the assets would be judgement proof as long as they remained within the retirement plan or had been rolled over into an IRA. On the face of it, after reading about this recent civil judgement, it seems that might no longer be true. But there are some important facts that are specific to this case which need to be taken into account.

A Montgomery County Court of Common Pleas judge recently ruled that the estate of Ellen Gregory, who was killed by Rafael Robb in 2006, will be able to recover funds from his retirement accounts. Mr. Robb’s position was that these accounts (which consist of state pension funds and IRAs which total almost $3 million dollars) were exempt from judgements.

Mr. Robb, an ex-University of Pennsylvania professor, bludgeoned his wife, Ms. Gregory, to death in 2006. He was arrested in January 2007 and charged with first- and third-degree murder. He ultimately pleaded guilty to voluntary manslaughter and was sentenced to five to ten years in jail.

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