Pension and 401(k) Plans

CAFS was founded specifically to provide independent final claim appeal processing for ERISA plans, including all types of ERISA-governed pension plans.  This includes defined benefit pension plans (and cash balance plans), defined contribution plans, profit sharing and 401(k) plans and other types of plans and hybrid pension arrangements.  CAFS acts as an independent fiduciary, under ERISA, to adjudicate any claims raised by individual claimants with respect to their benefits under such plans.  By assuming the important role as the ERISA claim appeal fiduciary, CAFS eliminates conflict of interest, and improves the quality and integrity of decision-making.  We have designed our approach to fiduciary decision-making to be a better choice for sponsors of all types of retirement plans, regardless of how such final appeals are currently being handled.   

When plan sponsors undertake this important role internally, there are concerns of conflict of interest, self-dealing and whether the process was prudent.  There is also concern about liability for internal staff and executives – even personal liability.  Thus, the best practice is to retain an independent third party for this function.   Due to the complexities and risk of ERISA fiduciary liability, there are very limited sources of providers that have the capability, expertise and the willingness to take on this important role.

CAFS utilizes its extensive background in all types of ERISA plans, and its extensive working knowledge of ERISA’s fiduciary process requirements to provide plan sponsors with independent claim appeal processing under the rigors of ERISA Sections 404 and 405. Plan sponsors are always at an advantage when they employ CAFS to independently handle final claim appeals for their retirement plans where under ERISA, a Claim Procedure under ERISA Section 503 is mandated.

“Where conflicting interests potentially involving a fiduciary and his duty to act in the best interests of the plan participants and beneficiaries arise, depending on the circumstances of the case and the degree of the conflict, to avoid any taint the fiduciary at minimum might have to perform an " 'intensive and scrupulous independent investigation of [the fiduciary's] options.' " In re: Enron Corp. Securities Derivative and ERISA Litigation, 284 F.Supp 2d 511, 550 (S.D. Tex. 2003)(citing Bussian v. RJR Nabisco, Inc., 223 F.3d 286, 294 (5th Cir.2000)).

A Prudent Final Claim Services of Pension 401(k)
and other Retirement Plans

The CAFS fiduciary process is adapted and customized to fit each of our clients circumstances. Our overall process (see Full Service Appeal Processing for more details) is tailored to meet our clients specific needs. A critical part of this analysis, that most of our clients find comforting, is that the internal staff are often part of the internal investigative process. It would not be prudent to make a decision in a vacuum, without the advantage of the full background and history, when appropriate.

Using the plan documents, underlying facts and circumstances, consultations with plan service providers, actuaries and internal staff along with up-do-date information on statutory and regulatory interpretation, including court decisions and promulgations from government authorities and scholars, CAFS processes final claim appeals for pension, 401(k), defined contribution and other retirement plans.  Areas of such appeals may include:

• Calculations and benefit formula elements
• Eligibility determinations
• Vesting and Service determinations
• Certain Domestic Relations Matters involving appeals
• Distribution Methods and Forms
• Beneficiary Entitlements
• Early Retirement Benefits
• Disability Pension Matters

CAFS is a better alternative. As a truly independent source of decision-making under ERISA, CAFS eliminates conflict of interest, provides experience and quality processes, decreases staff time and training needs, improves the perception of fairness, and decreases litigation costs and liability exposure in the event disputed claims are litigated. Overall, there are only advantages to using CAFS.