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Who does one call in the event of a merger?


Guest Jerry O'Leary

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Guest Jerry O'Leary

As a Plan Administrator who would you contact to take action in face of a Corporate Merger or Tender Offer affecting your Corporate plan?

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You probably need to talk to both a benefits attorney and a professional administrator. I'm a pension actuary and we are often involved with plan mergers and spinoffs resulting from corporate transactions.

The attorney will help you review the plan document to determine which benefits must be continued and which can be modified/discontinued. The administrator can work with you to determine any actions which must be taken (for example, in the pension area appropriate notices must be given to participants before any changes can become effective, certain benefits can be paid out and others must be maintained, etc).

On occasion we've found out about corporate transactions affecting pension plan after the fact and sometimes the resulting benefits and benefit liabilities accruing to the acquirer or acquiree were not what was expected, but the event had taken place and it was too late to change.

Be sure you research the issues before anything is finalized!

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