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JANUARY 2011
www.sebc.org
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2011 Officers and Leadership
President
Tim McCabe
Stadion Money Management
Watkinsville, Georgia
tim.mccabe@stadionmoney.com
Vice President
Jeff Capwell
McGuireWoods LLP
Charlotte, North Carolina
jcapwell@mcguirewoods.com
Treasurer
Kathy Solley
Nelson Mullins Riley & Scarborough LLP
Atlanta, Georgia
Kathy.solley@nelsonmullins.com
Secretary
Debra Mackey
Burr & Forman LLP
Birmingham, Alabama
dmackey@burr.com
2011 Steering Committee
Bert Carmody
Southeastern Fiduciary Services LLC
Atlanta, Georgia
bertcarmody@comcast.net
Frasier Ives
Wells Fargo Insurance Services
Charlotte, North Carolina
frasier.ives@wellsfargo.com
Dan Keys
Wendy's/Arby's Group, Inc.
Atlanta, Georgia
daniel.keys@wendysarbys.com
Susan Rosenbleeth
Buck Consultants
Atlanta, Georgia
susan.rosenbleeth@buckconsultants.com
Andrew Schaffernoth
Alta Capital Management
Midlothian, Virginia
aschaffernoth@altacapital.com
Howard Whitehead
Cisco Systems, Inc.
Atlanta, Georgia
whiteh@cisco.com
Executive Director Anne McKillips
3334 Peachtree Road NE
Suite 709
Atlanta, Georgia 30326
404-812-9132
amckillips@sebc.org
Communications Committee Chair
Andrea Bapst
Catlin, Inc.
Atlanta, Georgia
Fundraising Committee Chair
Tim McCabe
Stadion Money Management
Watkinsville, Georgia
Membership Committee Chair
Julie Brock
JP Morgan Retirement Plan Services
Kansas City, Missouri
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Tuesday March 29, 2011 - Reynolds Plantation - Spring Annual Educational Conference
Mark your calendar now! The program is shaping up to be excellent. We will begin the day with a look at the current political situation around "Obamacare" with Charles K. "Chip" Kerby a partner with Liberte' Group LLC. Chip will bring us up to date on what is going on inside the beltway.
From there we will concurrent sessions on such topics as allocating resources when looking at total compensation, retirement readiness and more.
Our lunch speaker will be Retired Colonel Bill "Rod" Moore Deputy Director Intelligence, CENTCOM who will discuss current stress points in the Middle East and their impact on the U.S.
Our next session will be a general session "Ask the Expert" with Eleanor Banister from King & Spalding, John Hickman from Alston & Bird and Jeff Hoffman from DeMarche Associates. Moderating this panel will be Peggy Davis, Chief Financial Officer at Savannah River Nuclear Solutions LLC.
This will be followed by our closing panel of plan sponsors discussing their approach to benefits at their organization.
Registration opens soon.
**************************************** And don't forget Monday March 28!
On Monday March 28 we will have our pre-conference events - a golf tournament, bike ride and maybe even a Segway Tour of the Plantation.
What a way to get to know your colleagues in the industry; - someone you may need to ask a question of someday. You never know when you need a resource!
Plan now to join us on Monday the 28th and stay over so you won't miss the early start of the sessions of the next day. We have a room rate of just $145 per night which is extra-ordinary for this wonderful location.
Hotel Reservations can be made now - call 1-800-241-3333 and ask for the SEBC rate!
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Sponsorships
Thank you to the following for their sponsorship at the Spring Conference:
- Burr & Forman - Registration Desk Sponsor
- JP Morgan Retirement Plan Services - General Session Sponsor
- Lincoln Financial Group - Golf Tournament Title Sponsor
If you are interested in any sponsorship opportunity, please contact Anne McKillips in the SEBC office right away. We have a number of organizations that are in discussions now. Sponsorship opportunities for the fall conference last year sold out, so don't wait and miss out.
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Membership Dues are due Now
Thank you to the many of you that have renewed for 2011. If you have not renewed - now is the time. Dues are $250 per individual for service providers such as attorneys, brokers, consultants, etc. For Plan Sponsors, dues are $250 for the company and they can name as many individuals that are involved in providing benefits to the employees in their organization.
Click Here to renew on-line or by mail
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COMMITTEE REPORTS
The SEBC could not function without the many volunteers who participate on committees. See the sidebar above for the committee chairs but working behind those individuals are committee members.
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STEERING COMMITTEE - The Steering Committee is the governing body of the conference. They meet by phone several times a year and in person periodically. If you ever have any comments or questions, feel free to contact any member at any time. They will be happy to help.
COMMUNICATIONS COMMITTEE - While this committee oversees the content of the newsletter, they also do brief write-ups on various members of the leadership.
This month's newsletter catches up with Andrea Bapst, the incoming 2011 chair of the SEBC Communications Committee. Andrea has been on SEBC committees for the last two years, having served on the program committee in 2009 and 2010.
Andrea works in human resources for the US operations of Catlin Group Limited, the large property and casualty insurance underwriter primarily based in the UK. She's been with Catlin for four years, having moved from Buffalo to Atlanta to take her current position. Andrea functions primarily as a human resources generalist, balancing her doses of benefit issues with doses of training issues and labor/employment issues. Andrea also serves on her company's 401(k) administrative committee. Andrea's favorite aspect of working with benefit issues is seeing how benefits can really help an employee through personal situations and in times of crisis. Like insurance, no one really thinks about benefits until you need them.
Andrea enjoys not having lake effect snow here in Atlanta, and participates in many outdoor activities, including tennis (ALTA doubles, USTA singles), running, and cycling. A highlight for Andrea in 2010 was participating in a seven-day, 540 mile bike ride from San Francisco to Los Angeles as part of a fundraising effort for AIDS Lifecycle. She had strong legs after the ride! Andrea also ran a half marathon in 2010 on Atlanta's Silver Comet Trail. For 2011, Andrea is contemplating duathlons.
Andrea stays involved with the SEBC to keep up with networking, and to keep up with a rapidly changing benefits landscape. Andrea particularly values SEBC's educational events and thinks the knowledge gained through SEBC allows her to be a more effective and discerning provider of benefit services at Catlin.
Andrea lives in the Atlanta suburb of Mabelton, where she shares space with one black cat, aged two.
FUNDRAISING COMMITTEE - This committee is responsible for securing sponsorships for the SEBC. The monies raised by this committee is the lifeblood of the organization. Sponsorships are available for whatever budget you might have - check out the opportunities here
MEMBERSHIP COMMITTEE - Along with all members, this committee is responsible for new members. This month we would like to welcome Cynthia Wright from Rheem Manufacturing in Atlanta and Jenny Shealy from Nelson Mullins in Myrtle Beach, SC.
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| LEGISLATIVE UPDATE
This information is provided by Bard Brockman at Bryan Cave LLP as general information only. You should consult with your legal counsel regarding specific application to you or your plan.
Supreme Court Issues Guidance on Recovery of Attorney's Fees Under ERISA.
The Supreme Court issued its first substantive opinion regarding the award of attorney's fees under ERISA in Hardt v. Reliance Standard Life Ins. Co., 130 S. Ct. 2149 (2010). At issue in the case was whether ERISA § 502(g)(1) provides a district court discretion to award reasonable attorney's fees only to a prevailing party.
The plaintiff in that case, Ms. Hardt, applied for long-term disability benefits under her employer's plan after experiencing medical problems. After exhausting her administrative remedies, Hardt sued Reliance, the disability insurance carrier, under ERISA § 502(a)(1)(B) for wrongful denial of benefits. The district court denied Reliance's summary judgment motion, finding that because Reliance had acted on incomplete medical information, its benefits denial was not based on substantial evidence. The district court likewise denied Hardt's summary judgment motion, but it stated that there was "compelling evidence" in the record that Hardt was totally disabled, and that it was inclined to rule in her favor. The district court remanded the matter to Reliance and gave it 30 days to consider all of the evidence and to act on Hardt's application, or else the district court would enter judgment in Hardt's favor. Reliance did as instructed and awarded Hardt the disability benefits. Hardt then filed a motion in the district court for an award of attorney's fees under ERISA § 502(g)(1). The district court determined that Hardt was the "prevailing party" in the proceeding, and it granted her motion for attorney's fees. On appeal, the Fourth Circuit reversed, holding that Hardt had failed to qualify as a "prevailing party" because she did not obtain an "enforceable judgment on the merits" or a "court-ordered consent decree." The Supreme Court granted certiorari review to resolve a conflict among the circuits on whether a fee claimant must be a "prevailing party" to be awarded attorney's fees under ERISA § 502(g)(1).
The Hardt Court employed basic statutory construction principles to quickly resolve the issue of whether a fee claimant under § 502(g)(1) must be a prevailing party. First, it noted that § 502(g)(1) does not purport to limit the availability of attorney's fees to prevailing parties; in fact, the text of that section permits the district court discretion to award fees to either party. Next, it contrasted § 502(g)(1) with other fee-shifting sections of ERISA - § 502(g)(2) and § 515 - which require a judgment on the merits before fees can be awarded. The contrast between these sections makes it clear, the Court noted, that Congress did not intend for fee awards under § 502(g)(1) to be limited to prevailing parties. 130 S. Ct. at 2156.
The Court next addressed the circumstances under which a district court may award attorney's fees under § 502(g)(1). Here, the Court relied heavily on its prior decision in Ruckelshaus v. Sierra Club, 463 U.S. 680 (1983), in which it interpreted a similar discretionary fee-shifting provision in the Clean Air Act to require a fee claimant to achieve "some degree of success on the merits." The Court explained that this standard is not met by a "trivial success on the merits" or a "purely procedural victory," but it is satisfied if the district court can "fairly call the outcome of the litigation some success on the merits" without a lengthy inquiry into whether the success was substantial or whether it occurred on a central issue. Id. at 2158, citing Ruckelshaus, 463 U.S. at 688. Applying this standard to the facts before it, the Court ruled that Hardt had achieved "some success on the merits" because the district court had remanded the matter to Reliance with a strong suggestion that Hardt was entitled to the disability benefits.[1] Importantly, the Hardt Court expressly reserved the issue of whether a remand to a plan administrator, without more, constitutes "some success on the merits" sufficient to make a claimant eligible for an award of attorney's fees under ERISA § 502(g)(1). Id. at 2159.
[1] The Hardt Court also noted that the district court had applied the five factors enunciated in Quesinberry v. Life Ins. Co. of North Am., 987 F.2d 1017 (4th Cir. 1993), to guide its discretion in deciding whether to award attorney's fees under ERISA § 502(g)(1). Id. The Court noted that those five factors bear no obvious relation to the text of § 502(g)(1), but it expressly did not foreclose the possibility that once a claimant had demonstrated some "success on the merits," a court may consider other factors in deciding whether to award attorney's fees. Id.
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