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9/8/2006: No Trust Requirement for Cafeteria Plans, Fourth Circuit Confirms (Deloitte via
Excerpt: [T]he court's decision reaffirms the Department of Labor's (DOL) position that employee premium contributions made through IRC § 125 cafeteria plans do not have to be held in trust, but still are ERISA plan assets and must be handled accordingly. The court's decision also addresses the issue of how much time employers have to transfer participant premium contributions to the plan administrator so they can be used to pay benefits or plan administration expenses.
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