Under a written agreement anemployer agreed to pay the Chief Financial Officer (CFO)US$75,000 (EUR 83,350) annually in monthly installments over aten-year period to commence 60 days after retirement ortermination. This agreement was contingent upon not competingwith the employer within a 75-mile radius for five years. Theemployer claimed the CFO violated the agreement, and so the CFOsued. In determining whether there was an ERISA plan, the courtrequired that there be:

The first factor was stipulated, and therefore the issue waswhether an ongoing administrative structure was in place, forexample, the need to monitor the CFO's activities to determine ifhe violated the agreement. Applying the court's reasoning, anERISA plan would exist if there were a finding of an ongoingadministrative scheme even if under a single contract.

Source: Nelson v. Jones & Brown, Inc. Civ. No. 01-481(W.D. Pa. 2001). Howard Pianko, Epstein Becker &Green