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Be Careful With Severance Plans; ERISA Reporting and Disclosure Rules Can Apply
Fisher & Phillips LLP Link to more items from this source
[Guidance Overview]
Nov. 4, 2009
Excerpt: While most employers are well aware of ERISA's application to retirement plans and group health plans, many are surprised to learn that some severance arrangements are considered 'welfare pans' under ERISA and, are therefore, subject to ERISA's reporting and disclosure requirements, as well as the rules for processing and determining claims. Because not every severance arrangement is covered by ERISA, many employers overlook its potential application when they are implementing or designing a severance plan.

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