ERISA and Tax Considerations for Severance Benefit Plans

Trucker Huss

As the shelter-in-place timelines are extended, many employers are faced with decisions about whether to provide severance pay or benefits in connection with a reduction-in-force or layoff. Designing and implementing a severance benefit plan, or drafting a severance agreement, involves complex compliance issues under the Employee Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (“Code”). Failure to comply can result in severe penalties under both ERISA and the Code.

In this webinar, we will discuss the relevant legal requirements and share our best practices for severance benefit plans, which we have developed over decades of advising clients on implementing and administering severance benefit plans.

Topics this webinar will discuss:

• Some critical differences between a furlough and a layoff
• Application of ERISA to severance plans and the employer protections under ERISA for severance plans
• Application of the “serious consideration” doctrine when preparing to adopt or amend a severance plan
• Whether the severance benefits are subject to Code Section 409A
• Tax and contract issues related to providing medical benefits post-termination
• Best practices for drafting and administering severance benefit plans

Presenters:

• Marc Fosse, Director, Trucker Huss, APC
• Mary Powell, Director, Trucker Huss, APC 

More Information, How to Register