Comments on: Bad Boy Clauses in Plan Documents http://qualifiedpensionconsulting.com/ppablog/2007/06/06/bad-boy-clauses-in-plan-documents/ Published by Suzanne L. Wynn, Esq., LLM Tax. of Erisafile / Qualified Pension Consulting Inc. Sat, 05 Nov 2011 17:33:01 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Jeremy Rodriguez http://qualifiedpensionconsulting.com/ppablog/2007/06/06/bad-boy-clauses-in-plan-documents/#comment-7 Jeremy Rodriguez Fri, 15 May 2009 17:12:16 +0000 http://qualifiedpensionconsulting.com/ppablog/2007/06/06/bad-boy-clauses-in-plan-documents/#comment-7 The following citations involve court cases dicussing the application of the bad boy clause. I can't remember if any explicitly address non-competes, but I know Sal Tripodi in the ERISA Outline book uses non-competes as an example of "causes" in a bad boy clause. 1) Hepple 622 F.2d 962 (8th Cir. 1980) 2) Hummell 634 F.2d 446 (9th Cir. 1980) 3) Noell 764 F.2d 827 (11th Cir. 1985) The following citations involve court cases dicussing the application of the bad boy clause. I can’t remember if any explicitly address non-competes, but I know Sal Tripodi in the ERISA Outline book uses non-competes as an example of “causes” in a bad boy clause.

1) Hepple 622 F.2d 962 (8th Cir. 1980)

2) Hummell 634 F.2d 446 (9th Cir. 1980)

3) Noell 764 F.2d 827 (11th Cir. 1985)

]]> By: Suzanne Wynn http://qualifiedpensionconsulting.com/ppablog/2007/06/06/bad-boy-clauses-in-plan-documents/#comment-6 Suzanne Wynn Mon, 05 May 2008 20:35:59 +0000 http://qualifiedpensionconsulting.com/ppablog/2007/06/06/bad-boy-clauses-in-plan-documents/#comment-6 Thank you for your comment. I could see how the last sentence of Treas. Reg. 1.411(a)-4T(c) could be interpreted this. What authority has the IRS accepted for taking a vested benefit from a participant for violating a non-compete clause? Thank you for your comment. I could see how the last sentence of Treas. Reg. 1.411(a)-4T(c) could be interpreted this. What authority has the IRS accepted for taking a vested benefit from a participant for violating a non-compete clause?

]]> By: Lawrence Zeller http://qualifiedpensionconsulting.com/ppablog/2007/06/06/bad-boy-clauses-in-plan-documents/#comment-5 Lawrence Zeller Mon, 05 May 2008 17:40:14 +0000 http://qualifiedpensionconsulting.com/ppablog/2007/06/06/bad-boy-clauses-in-plan-documents/#comment-5 If a plan has an accelerated vesting schedule that provides vested percentages greater than the minimum statutory required percentages, the plan may provide a bad boy clause that reduces the vested percentage down to the statutory minimum in the event that the employee commits a bad boy act. If a plan has an accelerated vesting schedule that provides vested percentages greater than the minimum statutory required percentages, the plan may provide a bad boy clause that reduces the vested percentage down to the statutory minimum in the event that the employee commits a bad boy act.

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