Free Floating: Understanding ERISA Requirements Regarding Float Income Derived from Plan Assets

By Thomas Lamb, Albany Government Law Review

ERISA’s Standard for Fiduciaries

In December of 1963, the Studebaker-Packard Corporation shut down its plant in South Bend, Indiana, giving rise to one of the most “glorious stor[ies] of failure in business.”[1]  At the time of the plant’s closing, the pension fund for hourly workers was about as broke as the rest of the company.[2]  Participants enrolled in Studebaker-Packard’s retirement plan whose benefits had vested received their full pension; but the plan did not have enough funds to honor what it had promised younger participants whose benefits had not yet vested.  “Some received a lump-sum payment worth a fraction of the pension they expected, and others got nothing at all.”[3]  Thousands of employees were left without compensation for years of contributions, and also without a legal remedy.

Continue reading “Free Floating: Understanding ERISA Requirements Regarding Float Income Derived from Plan Assets”

U.S. Laws Lethal to Palestine’s Statehood Bid

By Kat Fina, Albany Government Law Review

On September 23, 2011, after a century of conflict and amid threats from the United States, Mahmoud Abbas, President of the Palestinian National Authority, submitted Palestine’s request for statehood to the United Nations.[1]  Mr. Abbas asked the United Nations General Assembly to stop the occupation of his country and to recognize the self determination of his people.[2]  Mr. Abbas declared Palestine’s request to allow for the independent state of Palestine with a capital of Jerusalem and territories consisting of the West Bank and Gaza Strip.[3]  As Mr. Abbas held a copy of the letter requesting membership, General Assembly members gave a standing ovation, and Palestinians gathered in the streets of the West Bank and the Gaza Strip to cheer their leader and wave the Palestinian flag.[4]  Continue reading “U.S. Laws Lethal to Palestine’s Statehood Bid”

Keeping it in the Family: The New York State Kinship Caregiver Program

By Matthea Ross, Albany Government Law Review

Background

Many programs in New York State are in danger of being cut due to budget cuts.  One example is the Kinship Caregiver Program.[1]  However, this program should be maintained because it provides children with the stability of family during times when their lives are being greatly disrupted. [2]

Kinship Care is defined as “the full time care, nurturing and protection of children by relatives, . . . godparents, stepparents, or any adult who has a kinship bond with a child,”[3] including close family friends depending on the jurisdiction.[4]  Often considered a way of preserving the family, placing children with relatives helps children maintain those familial connections.[5]  Continue reading “Keeping it in the Family: The New York State Kinship Caregiver Program”

A Bitter Cup of Coffee: Postscript

Special Guest Post by Doug Gladstone, author: A Bitter Cup of Coffee: How MLB & The Players Association Threw 874 Retirees A Curve, and panelist for The Albany Government Law Review Spring Symposium: Baseball & the Law: America’s National Pastime.

On Thursday, April 21, Major League Baseball (MLB) and the Major League Baseball Players Association (MLBPA) announced, with much fanfare, that they would be giving all those men who played in “The Show” from 1947-1979, who had more than one day of service credit but less than four years, and who were therefore unable to qualify for MLB pensions, payments of up to $10,000 each for the next two years, depending on their respective lengths of service. The issue of these inactive, non-vested retirees was why I was on the “Legal State of Our National Pastime” panel at  Baseball & The Law: America’s National Pastime symposium held on Monday, April 11 in the Dean Alexander Moot Courtroom at Albany Law School.

As the author of the book widely credited with helping spur MLB to pay these men the monies they’re about to receive, I’ve naturally been asked what I thought about the announcement quite a bit over the last week or so. Admittedly, I have mixed emotions about it. Obviously, given the continuing national recession in this country, there are very few people nowadays who would turn up their noses at an extra $10,000 per year. But that pales in comparison to what some of these men could have received if they were just restored back into pension coverage.

Take Tom Bruno, for instance. A native of Chicago who pitched for the St. Louis Cardinals, Kansas City Royals and Toronto Blue Jays, Bruno finished his career having accrued three years and 161 days of service. He fell one game short of meeting the vesting requirement. One game. Based on a report which indicated that the average baseball retiree was making $30,000 in 2006, you know what a onetime retroactive check would be worth to a guy like Bruno?  If you answered, “$900,000,” you’ll realize why I’m not so impressed that he’s getting $10,000.

For the record, Major League Baseball is a $7 billion industry. Today’s player makes, on average, $3.3 million. You know what the most Tom Bruno ever made was? Only $65,000. These days, men like Ryan Howard ($125 million over five years), Matt Holiday ($120 million over seven years) and A-Rod ($27.5 million per year) are commanding what some would perceive are ridiculously obscene salaries. And part of the reason they’re able to earn that kind of money is due to men like Bruno, who frequently went without checks during work stoppages because he realized that a union is supposed to go to bat, not only for future players, but for past players as well.

Continue reading “A Bitter Cup of Coffee: Postscript”