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Posted

Is anyone aware of a retirement-services provider using impossibility or a contract’s force majeure clause as a reason not to do something that otherwise would be a service obligation?

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Posted
3 hours ago, Peter Gulia said:

Is anyone aware of a retirement-services provider using impossibility or a contract’s force majeure clause as a reason not to do something that otherwise would be a service obligation?

Not aware of any, but I have had a couple of conversations with clients who have brought up force majeure issues on other business issues (like paying rent to the mall when the mall has been closed by the local government). I assume this question is somehow related to the corona virus issue?

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

Posted

Yes, it's about the public-health emergency.

My observation, so far, is that service providers and service recipients are cooperating nicely, making it unnecessary to evaluate questions of law.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Posted

Peter, would it be hasty to make any such application without accounting for any provisions in "relief" legislation and regulation?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted
Quote

 

Let me give an example:  My client has a service agreement with a recordkeeper.  The agreement obligates the recordkeeper to provide a specified number of workers at the client’s location.  That location is not one under any government-ordered shutdown.  It’s not strictly impossible for the recordkeeper to perform its service obligation.  The recordkeeper requested my client’s assent to provide the workers by technology presence, rather than face-to-face presence.  The assent made it unnecessary for either party to consider impracticability or force majeure issues.

 

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Posted
1 hour ago, Peter Gulia said:

Let me give an example:  My client has a service agreement with a recordkeeper.  The agreement obligates the recordkeeper to provide a specified number of workers at the client’s location.  That location is not one under any government-ordered shutdown.  It’s not strictly impossible for the recordkeeper to perform its service obligation.  The recordkeeper requested my client’s assent to provide the workers by technology presence, rather than face-to-face presence.  The assent made it unnecessary for either party to consider impracticability or force majeure issues.

 

Can you spell COOPERATION? Sure you can! ?

 

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

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