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Cohen), selects its plan administrator, the members of the
committee administering its plan, and the level of benefits
offered under its plan;11 the only employee benefit provided
under the subject VEBA’s is a current-year death benefit payable
at a specified multiple of prior-year compensation. Each
employer generally funds its plan with a limited number of group
insurance policies and/or group annuities owned by its plan for
the benefit of its employees. All group life insurance policies
must provide explicitly that the insured individual may convert
his or her policy, without medical examination, to an individual
policy upon termination of eligibility for coverage.
Each employer has its own trust account maintained under its
plan for its covered employees, and each plan is accounted for
separately. A covered employee has no recourse for benefits
other than, first, from insurance contracts on his or her life
and, second, from any assets held in the employer’s plan.
Employees covered by one plan cannot reach assets of another
plan, and occurrences in one plan do not affect another plan’s
operation. Each plan prepares its own separate summary plan
description, each employer may amend its plan at any time, and
each employer may terminate its plan at any time by delivering
11 The committee members of the Neonatology Plan and the
Lakewood Plan are Messrs. Murphy, Cohen, and Kirwan, and the
committee members of the Marlton Plan are Mr. Ross, Daniel
Sonnelitter, and Timothy S. Lo. PES administered all three plans
at all times relevant herein.
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