RBC Capital’s Wealth Accumulation Plan Likely Subject to ERISA, Fifth Circuit Rules

An administrative assistant seeking $27,000 under her company’s wealth accumulation plan won her appeal July 14 after the U.S. Court of Appeals for the Fifth Circuit found that the plan was governed by federal benefits law (Tolbert v. RBC Capital Mkts. Corp., 2014 BL 194586, 5th Cir., 13-20213, 7/14/14).

Reversing a district court decision, the Fifth Circuit found that the plan—sponsored by financial services company RBC Capital Markets Corp.—qualified as a pension plan under the Employee Retirement Income Security Act because it resulted in the deferral of compensation past the point of an employee’s termination of employment. ...