Recent headlines involving the Central States Teamsters Pension Fund and the Pension Benefit Guaranty Corporation’s (PBGC) Special Financial Assistance (SFA) Program highlights an issue with meaningful consequences for multiemployer defined benefit plans—unreported deceased participants. In fact, PBGC’s alleged overpayment of $127 million under the American Rescue Plan Act’s Special Financial Assistance (SFA) Program covering an
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Revisiting Post-Closing Management Incentives in Challenging Climates
When private equity investment transactions close, management and private equity investors are off to the races—generally aligned on strategic and financial objectives. However, as market conditions and the economic climate shift, key parties may become misaligned and management incentive plans (MIPs) could become underwater or ineffective.
Withholding on Stock Awards: Shortened Settlement Cycle to One Business Day (T+1) Effective May 28
Effective May 28, 2024, following recent changes to US Securities and Exchange Commission and NASDAQ Stock Market rules, most standard broker-dealer securities transactions will have to be settled within one business day after the Deposit Withdrawal at Custodian date (DWAC or trade date). This will likely have significant federal employment tax implications for employers that…
Impact on ERISA Regulation if Supreme Court Throws Chevron Deference Overboard
The US Supreme Court heard arguments on January 17 in Relentless v. Department of Commerce and Loper Bright Enterprises v. Raimondo . In both cases, a commercial herring fishing company challenged a regulatory requirement that the company cover the costs of an observer required to ride along on the fishing boat to confirm compliance with…
Managing Welfare Plan Risk: The Fiduciary Committee
Fiduciary committees have long been established in connection with retirement plans to manage the investment, legal compliance, and operational risks that can arise under the Employee Retirement Income Security Act of 1974, as amended (ERISA). Since the enactment of the Patient Protection and Affordable Care Act (ACA) and, more recently, the Consolidated Appropriations Act, 2021…
Reminder: California Noncompete Deadline Is February 14
Besides being Valentine’s Day, February 14, 2024 is an important day for employers with any California employees: It is the last day for employers to notify California employees (including former employees who were employed after January 1, 2022) that any unlawful noncompetes applicable to them are void. These notices need to be specific to each…
ESG Investments Updates for 2023
US state and federal laws have increasingly sought to regulate environmental, social, and governance (ESG) investing—a trend that continued in 2023. This increased regulatory focus has impacted benefit plans, including ERISA plans and, especially, public retirement plans.
Not Done Yet—Employee Benefits Plan Transition and Integration Decisions Continue After M&A Transactions Close
The letter of intent has been executed. The due diligence is done. The purchase agreement is signed. The money has been wired. The deal has closed. You’re done—back to business as usual! Think again . For the folks responsible for employee benefits matters, whether it be the CEO, CFO, comptroller, or human resources team, the…
Implementing the New Forms W-4P and W-4R: One Year Later
Effective as of January 1, 2023, payors of qualified plan distributions have been required to use a redesigned IRS Form W-4P for payee withholding elections on periodic payments and a new Form W-4R for nonperiodic payments and eligible rollover distributions. Since then, we have fielded myriad questions on the new forms, from the basic requirements…
Publicly Traded Companies: Don’t Forget to Register Plan Interests in Deferred Compensation Plans
Publicly traded companies generally file registration statements on Form S-8 to register the offering of the company’s stock pursuant to the company’s equity incentive plans under the Securities Act of 1933, as amended (Securities Act). This same filing requirement applies under certain circumstances to a company’s nonqualified deferred compensation plans.