Is New employer obligated to offer COBRA to new employees in Merger/Ac

[Guest Scott Fielding]

Is the new owner of a company obligated to offer COBRA to old employees of company after merger or acquistion?

[Guest allredh]

Scott, you will of course want to check with your legal folks, but generally speaking you would probably be safe to assume that you are taking on the obligations under cobra along with the acquisition. In acquisions we have done, we took on the cobra work along with other benefits administration. Good luck.

[BeckyMiller]

You need to look at the recent revision to the COBRA regulations at 54.4980B-9. This regulation discusses the implications in stock or asset transactions. Some of the conclusions were unexpected by me, though they do make sense. The regulation is surprisingly helpful and specific. The examples provided are actually realistic.

Since you don't say what form of acquisition you are dealing with, I can't give you a response other than sending you to the regulation.

[david rigby]

http://www.benefitslink.com/taxregs/54.498...80B-final.shtml