ERISA & Employee Benefits

Congress Considers Multiemployer Pension Reforms While Benefit Suspensions Loom

The U.S. Treasury Department has received an application by the American Federation of Musicians and Employers' Pension Fund (the "Plan") to suspend benefits under the Multiemployer Pension Reform Act of 2014. Multiemployer pension plans cover union-represented workers and are run by a board of trustees, half appointed by the union and half appointed by employers. Most provide a traditional ...

ERISA Case in the District Court for the Southern District of New York Highlights Plan Sponsor QDRO Responsibilities

A sometimes forgotten issue in a divorce, separation, or other domestic relations proceeding is the division of retirement plan benefits between former partners and/or husband and wife. While the general rule is that ERISA and the Internal Revenue Code do not permit a participant to assign or alienate the participant's interest in a retirement plan to another person, a developed exception to the ...

Private Equity Fund Gains Important Victory

In Sun Capital Partners III v. New England Teamsters and Trucking Industry Pension Fund, the Court of Appeals for the First Circuit ruled on November 22 in favor of private equity funds, thus settling a long-running dispute as to whether two Sun Capital Funds could be held liable for the withdrawal of a portfolio company from the New England Teamsters Multiemployer Pension Plan.  

Deal-Breaking M&A Issues Related to Employee Benefit Plans and Executive Compensation

Employee benefit and executive compensation issues can disrupt merger and acquisition transactions when overlooked until the last minute, or cause major post-transaction problems if not properly addressed before closing. The list below is intended to facilitate the detection, negotiation, and resolution of possible employee benefit plan and executive compensation-related problems. As a general ...

Multiemployer Plan Reforms are Needed Before it's Too Late

The President's proposed 2020 Budget, released March 11, 2019, would shore up the Pension Benefit Guaranty Corporation's ("PBGC") multiemployer pension plan insurance fund by increasing premiums, including "variable-rate" and "exit" premiums in addition to the current "flat-rate" premiums. The PBGC's separate single-employer insurance program has included such premiums for years. The ...