Plaintiffs Fail to Float Claim Past District Court
The U.S. District Court has determined that float income is not a plan asset. This may be the last we hear about ERISA claims involving float.
David Witz1 min read63 wordsThe U.S. District Court for the District of Massachusetts in In re Fidelity ERISA Float Litigation has determined that float income is not a plan asset.
What This Means
By determining float income is not a plan asset, the court found retention of float income is not a prohibited transaction. However, float is still a form of indirect compensation that must be considered under 408(b)(2) responsibilities.
