Recent developments at the US Labor Department and at various state and local governmental agencies have focused attention as never before on the payment to and receipt of gratuities by employee benefit plan fiduciaries. What one court has called the “gravy train” and the press has labeled “pay for play” subject fiduciaries to potentially severe penalties including damages reimbursement, fines, removal and criminal prosecution. This article describes the most recent developments in this controversial area.


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