Open AccessEmployee Benefit Plan Language And Sponsor Misconception
Author(s) -
Robert W. Moreschi
Publication year - 2011
Publication title -
journal of business case studies
Language(s) - English
Resource type - Journals
eISSN - 2157-8826
pISSN - 1555-3353
DOI - 10.19030/jbcs.v6i5.895
Subject(s) - jargon , plan (archaeology) , business , liberian dollar , variety (cybernetics) , set (abstract data type) , product (mathematics) , database transaction , compensation (psychology) , confusion , actuarial science , marketing , finance , computer science , psychology , philosophy , linguistics , geometry , mathematics , archaeology , artificial intelligence , psychoanalysis , history , programming language
The employee benefit plan marketplace is a multi-trillion dollar industry as measured by assets under management. Previous research suggests that even sophisticated plan sponsors and participants are uncertain about the details of their plan. The variety of fee types, (wrap fees, transaction fees, participant fees, and set-up fees) and the use of industry jargon can lead to confusion and misunderstanding. This paper is a case study of an actual deferred compensation plan. We examine the business law aspects of the relationship, particularly how the complexity of the product, coupled with the contract language, could lead to plan sponsor and participant misunderstanding.