August 29, 2006 (PLANSPONSOR.com) - Saying they
wanted to give 403(b) plan sponsors and others associated
with the plans more time to implement rules proposed in 2004,
Internal Revenue Service (IRS) officials have scheduled an
effective date of January 1, 2008.
In a news release, the IRS said that the new
deadline was designed to also help give employees,
insurance carriers and mutual funds involved in 403(b)
plans “a reasonable advance period before the
regulations go into effect.”
The affected regulations also include those
covering related controlled groups under 414(c),
according to the announcement.
Court Upholds Ruling for Officer Who Aided Coworker in
Discrimination Claim
August 28, 2006 (PLANSPONSOR.com) - The 1st US
Circuit Court of Appeals has upheld a jury's award of
$300,000 in damages for a police lieutenant who claims he was
retaliated against for helping a police officer file a sexual
discrimination claim.
In its opinion the appellate court pointed out that
the jury was reasonable in determining that the
city’s justification for reassigning John
McDonough and eventually placing him on leave were
pretextual. On three separate occasions a supervisor had
given three different reasons for reassigning McDonough
to the day shift, which meant a pay cut and
loss of his supervisory status.
Additionally, according to the court document, the
city claimed it placed McDonough on leave pending a
psychiatric evaluation because of safety concerns, but
the jury found that the actions during and following
McDonough’s notification of this leave were not
consistent with concerns of safety.
The city also appealed the jury’s award, claiming
that a previous state lawsuit lost by McDonough barred
the jury from reaching a different decision on this
federal civil rights case. In the previous lawsuit,
McDonough had sued the city claiming his denial of
promotion to captain was orchestrated by the mayor in
retaliation of his aid to the other police officer. The
appellate court rejected the city’s argument, noting the
federal suit claimed different retaliation by different
parties.
McDonough had been an officer with the Quincy,
Massachusetts police department for almost 30 years when
he learned of a female officer’s complaints of sexual
harassment within the department. He presented her
allegations of harassment to the mayor of the city, and
no action was taken, according to the court
document.
When he heard that the female officer was preparing
to file a lawsuit against the city, he supplied her with
the page of allegations he had presented to the mayor.
Within days of being briefed on the lawsuit and learning
of McDonough’s aid to the female officer, his superiors
reassigned him from the night shift, supervising the drug
enforcement unit, to the day shift where he had no
supervisory duties.
After McDonough learned that he had also been
stripped of his signing authorization for officers’
special pay circumstances and became upset, he was
stripped of his firearm and placed on leave pending a
psychiatric evaluation. After obtaining psychiatric
approval to return to work, he filed a lawsuit claiming
retaliation under Title VII of the Civil Rights
Act.
A federal jury in district court found for
McDonough and awarded him $300,000 in compensatory
damages. The appellate court affirmed the jury’s verdict,
but also remanded the case back to a jury to award
punitive damages as well.
The opinion in McDonough v. City of Quincy can be
read
here
.