Laid-Off Employee's Heart Attack Ruled Job-Related

March 2, 2009 (PLANSPONSOR.com) - The Massachusetts Supreme Court has ruled that an administrative assistant who had a heart attack at home after learning her job was terminated was entitled to accidental disability retirement benefits.

Business Insurance reports that, according to the opinion, Claire Cole, an employee of the city of Salem, Massachusetts, was at home when she had the permanently disabling heart attack. It occurred within one hour of being told her job would be cut.

Cole did not return to work, and court records state that when she applied for benefits, “lengthy and tortuous administrative and judicial proceedings” ensued, Business Insurance said. Cole later died.

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In 2006, the Contributory Retirement Appeal Board ruled Cole’s heart attack was caused by stress due to hearing her position would be cut and that her communication with her supervisor about the termination occurred during the course of employment. However, the Retirement Board of Salem appealed, arguing that Cole was ineligible for benefits because her injury did not occur during the performance of her work.

A trial court ruled for Cole, and the Supreme Court upheld the trial court’s decision, finding that “benefits may permissibly be awarded only when a disabling injury is sustained during the performance of work duties and not merely as a result of being at work when injured,” according to the news report.

Sales not Enough to Counter Losses to Mutual Funds

February 27, 2009 (PLANSPONSOR.com) - The combined assets of the nation's mutual funds decreased by $191 billion, or 2%, to $9.411 trillion in January, according to the Investment Company Institute (ICI).

However, market losses were at fault for the decrease, as most fund categories reported sales in excess of redemptions for the month. Long-term funds – stock, bond, and hybrid funds – had a net inflow of $25.35 billion in January, versus an outflow of $29.43 billion in December, ICI data showed.

Stock funds posted an inflow of $9.05 billion in January, compared with an outflow of $20.43 billion in December. Among stock funds, world equity funds (U.S. funds that invest primarily overseas) posted an inflow of $2.19 billion in January, while funds that invest primarily in the U.S. had an inflow of $6.85 billion.

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Bond funds had an inflow of $16.73 billion for the month, compared with an outflow of $7.01 billion in December. Taxable bond funds had an inflow of $12.87 billion and municipal bond funds had an inflow of $3.86 billion.

Money market funds were still the most popular choice for investors – at least for institutional investors – as ICI data showed the funds had an inflow of $59.52 billion in January, on top of the $109.35 billion inflow in December. Funds offered primarily to institutions had an inflow of $67.62 billion, while funds offered primarily to individuals had an outflow of $8.10 billion.

Hybrid funds posted an outflow of $419 million in January, compared with an outflow of $1.99 billion in December.

The ICI data is here .

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