When Do You Need an ERISA Attorney?

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When Do You Needan ERISA Attorney?
May 25, 2010
Dale R. Vlasek, Esq. McDonald Hopkins LLC 600 Superior Avenue, East Cleveland, OH 44114 [phone] dvlasek_at_mcdonaldhopkins.com
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ERISA Overview

• The Employee Retirement Income Security Act of
  1974 (ERISA) is a remedial statute.
• Covers employee pension benefit plans
• 401(k)
• Profit Sharing
• Defined Benefit
• ESOP

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ERISA Overview

• Covers employee welfare benefit plans
• Health benefits
• Group life insurance programs
• Disability plans
• Cafeteria plans
• Flexible spending accounts
• Severance plans

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Plan Documents

• ERISA requires every plan to have a document
• Retirement Plan
• A larger number of options
• Prototype plans
• Volume submitter plans
• Individually designed plans
• Complex plan design will require someone skilled
  in the drafting of the document

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Plan Documents

• Welfare Plans require documents
• Cafeteria plans
• Health plans
• Disability plans
• Severance plans
• Employers typically rely on insurance-provided
  document

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Determination Letter Filing

• Simple prototype plans can avoid requesting
  determination letters.
• Complex plans and/or individually designed plans
  are best advised to request letters.

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Correcting Document and/or Operational Issues

• Internal Revenue Service has created programs to
  correct document and operational problems
• Employee Plans Compliance Resolution System
  (EPCRS)
• Voluntary Fiduciary Correction Programs
• Delinquent Filer Voluntary Compliance Program

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Plan Audits

• IRS and DOL have stepped up audit programs.
• Helpful to understand what they are looking for
  and how to avoid or minimize exposure.
• Problems may be minimized or avoided by having
  someone knowledgeable assist before audit starts.
• After audit, it may be helpful to have skilled
  person assist in fashioning remedies or
  minimizing penalties.

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Corporate Transactions

• How to avoid problems when buying or selling
  companies or divisions
• Plan takeovers
• Plan mergers
• COBRA issues
• Underfunded pension plans

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Fiduciary Concerns

• Working with plan fiduciaries to document
  compliance with fiduciary concerns.
• Explaining the procedures to follow.
• Experience to steer away from problems.

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Multi-Employer Pension Plan Issues

• The recent economic downturn has created serious
  problems
• Workforce decline
• Asset value decline
• Multi-employer plans are assessing liability
  against employers