Supreme Court pension ruling helps small business owners
InRaymond B. Yates, M.D., P.C. Profit Sharing Plan v. Hendon, No. 02-458 (U.S.S.C March 02, 2004), the Supreme Court held, in the context of a bankruptcy issue, that:
The working owner of a business (here, the sole shareholder and president of a professional corporation) may qualify as a “participant” in a pension plan covered by ERISA. If the plan covers one or more employees other than the business owner and his or her spouse, the working owner may participate on equal terms with other plan participants. Such a working owner, in common with other employees, qualifies for the protections ERISA affords plan participants and is governed by the rights and remedies ERISA specifies. (Quoting unofficial syllabus prepared by Reporter of Decisions, not Court’s opinion itself).
Good news for small business owners, though not being an ERISA specialist, I’m not sure to what extent this issue was previously in doubt. Now if we could just get decent health insurance . . . .
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