The term "party in interest" refers to individuals or entities that have a vested interest in an employee benefit plan. This includes fiduciaries, service providers, employers, employee organizations, and certain relatives or business associates. Essentially, a party in interest can influence or be affected by the operations of the employee benefit plan.
This term is primarily used in the context of employee benefit plans, particularly those governed by the Employee Retirement Income Security Act (ERISA). Understanding who qualifies as a party in interest is crucial for compliance with legal obligations and fiduciary responsibilities. It may involve various legal areas, including employment law and corporate governance. Users can manage certain aspects of these plans using legal templates provided by US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A company's human resources manager is a party in interest because they manage the employee benefit plan.
Example 2: A law firm providing legal services to the plan is also considered a party in interest. (hypothetical example)
The primary statute governing this term is the Employee Retirement Income Security Act (ERISA), specifically 29 USCS § 1002, which outlines the definition and responsibilities of parties in interest.
| Term | Definition | Key Differences |
|---|---|---|
| Fiduciary | A person or organization that manages assets for the benefit of another. | All fiduciaries are parties in interest, but not all parties in interest are fiduciaries. |
| Service Provider | An entity that offers services to the employee benefit plan. | Service providers are a specific category of parties in interest. |
If you believe you are a party in interest regarding an employee benefit plan, review your role and responsibilities carefully. Ensure compliance with ERISA regulations. For assistance, consider using US Legal Forms' templates to help manage your responsibilities effectively. If your situation is complex, consulting a legal professional is advisable.
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| Attribute | Details |
|---|---|
| Governing Law | Employee Retirement Income Security Act (ERISA) |
| Key Stakeholders | Fiduciaries, employers, service providers, employee organizations |
| Compliance Requirement | Must adhere to fiduciary standards and reporting obligations |