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Second Circuit Highlights Key Definitional Aspects of Involuntary Termination Under 409A
Williams Mullen Link to more items from this source
Apr. 8, 2022

"The court, quoting the Plan's Section 409A interpretive language, concluded that, '… the Plan Administrator is directed to interpret Plan terms in conformance with Section 409A and its exemptions from taxation.' As such, the court ruled that the Plan administrator was not arbitrary and capricious in determining that Soto [1] had not experienced a qualifying layoff since she was not 'willing and able' to return to work due to her disability and [2] had not experienced a termination entitling her to Plan benefits." [Soto v. Disney Severance Pay Plan, No. 20-4081 (2d Cir. Feb. 16, 2022)]

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