Regional Vice President of Sales The Retirement Plan Company
|
Bates & Company, Inc.
|
AimPoint Pension
|
Loan & Distribution Specialist AimPoint Pension
|
Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
|
Compass
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
New Sun Capital Ruling: Private Equity Funds Avoid Portfolio Company Pension Liabilities But Caution Still Advised
Paul, Weiss, Rifkind, Wharton & Garrison LLP Dec. 3, 2019 "[T]his ruling provides some comfort but risks still remain.... Any single fund (including parallel entities) should avoid acquiring 80% or more ownership of the portfolio company to avoid ERISA controlled group liability.... [T]he sponsor should carefully consider how to use related funds and commonly-controlled vehicles to own the balance of the investment, to best support an analysis that no partnership-in-fact has been formed.... Private equity funds should continue to strengthen due diligence efforts regarding pension plans ... Fund disclosure documents should include discussion of the risk of ERISA controlled group liability[.]" [Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pension Fund, Nos. 16-1376, 19-1002 (1st Cir. Nov. 22, 2019)] |
Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the linked news item's title). |
An important word about authorship: BenefitsLink® created this link to the news item, but we are not the news item's author (unless expressly shown above). |