Executive & Incentive Compensation

Complying with the myriad of complex employee benefits rules can be mystifying. The attorneys in Ulmer & Berne’s employee benefits practice have extensive experience in all aspects of employee benefits and ERISA. We pride ourselves on being able to communicate complex employee benefits issues to our clients in an understandable and usable fashion. Areas of expertise include the following:

  • Employee benefit plan design and compliance, including pension and welfare plans
  • Executive compensation and nonqualified plans
  • Employee benefits issues in business transactions
  • Employee benefits litigation

Employee Benefit Plan Design and Compliance
Pension Plans. We have significant experience designing, drafting and working with all types of employee pension benefit plans, including profit sharing, 401(k), money purchase, defined benefit pension (including cash balance) and ESOPs. We regularly advise clients with respect to operational and administrative issues relating to such matters as non-discrimination testing, plan mergers, spin-offs and terminations, plan distributions, participant loans, contribution allocations and limitations, deduction issues, forfeiture allocations, amendment procedures, investment direction, investment policies, qualified domestic relations orders, plan investments in employer securities and employer real property, prohibited transactions and fiduciary responsibility issues.

In addition, members of our employee benefits practice are frequently involved in analysis of controlled group and affiliated service group status. We represent clients in audit controversies with the Internal Revenue Service and Department of Labor and assist clients in seeking private letter rulings, advisory opinions and prohibited transaction exemptions.

Welfare Plans. We have significant experience in designing, drafting and consulting with respect to all types of welfare benefit programs, including medical benefit plans, retiree medical plans, medical reimbursement plans, disability plans, group term life insurance, dependent care, cafeteria plans, voluntary employee beneficiary associations (VEBAs) and educational assistance programs.  We assist employers and insurers with claims issues and compliance with the complex ERISA claims procedures, privacy rules under HIPAA, and continuation health coverage under COBRA.  

Executive Compensation and Nonqualified Plans
We have extensive experience representing business and key executives in connection with the formulation, negotiation, drafting and interpretation of employment agreements, severance agreements and a wide variety of executive compensation benefit plans, including stock option plans, phantom stock plans, stock appreciation rights plans, split-dollar life insurance agreements, excess benefit plans, top hat deferred compensation agreements and rabbi trusts, including compliance with the new Code Section 409A. 

Employee Benefits Issues in Business Transactions
We assist clients with the benefits issues which arise in connection with purchases and sales of businesses. Such assistance includes drafting, reviewing and negotiating appropriate benefits representations and warranties and indemnifications in purchase and sales agreements. In connection with business acquisitions, we analyze the seller’s employee benefit plans, prepare tables comparing the seller’s programs with the buyer’s programs and outlining problem areas, and assist the client with integration of employee benefit programs. We also analyze issues involved in buying and selling businesses from or to employee benefit plans.

Employee Benefits Litigation
We handle numerous employee benefit litigation matters. We staff using the team approach, with an employee benefits and business litigation practitioner on each case. We represent businesses of all sizes, fiduciaries, insurers and financial providers in connection with ERISA disputes on a regular basis. We have handled routine claims for benefits, breach of fiduciary duty claims, wrongful termination of employment for purposes of denying employee benefits (510 claims), defense of employers against multiemployer benefit plan claims, representation of plan administrators in connection with qualified domestic relations order disputes and representation of clients in connection with litigation brought by governmental entities. We have extensive experience and expertise in representing employers in connection with withdrawal liability issues under multiemployer pension plans. 

Attorneys
Robert F. Brown
John C. Goheen
Ronald L. Kahn
Patricia A. Shlonsky

 

Clients

 

Representative Experience

Employee Benefits

Assisted several construction industry employers in negotiating mass withdrawal settlement terms with union pension fund and PBGC and resolving accumulated funding deficiency excise tax issues with IRS.

Assisted client in persuading insurance carrier to reinstate long-term disability benefits after it discontinued such payments.

Assisted trust company in evaluating its responsibilities in serving as trustee or custodian of IRAs investing in hard-to-value assets such as real estate partnerships and LLCs.

Assisted accounting firm in resolving qualification issues raised by IRS on audit of 401(k) plan.

Assisted client with VCP filing under EPCRS to correct TPA’s drafting error relative to defined benefit pension formula and corrective amendment.

Assisted client in obtaining Code Section 501(c)(9) tax-exempt status for VEBA established by TPA and in the preparation and filing of Forms 990 and 990-T excise tax returns for past 10 years.

Assisted client in establishing and qualifying ESOP and obtaining Code Section 1042 income tax deferral on gain from sale of shares to ESOP.

Assisted ESOP trustees with exercise of fiduciary duties related to sale of company stock as part of company’s acquisition by an outside party.

ERISA Litigation

Successfully defended Fortune 500 Company from union pension fund claim of complete withdrawal from request for review, initiation and prosecution of arbitration proceedings to all levels of federal court litigation.

Represented taxpayer in prosecution of U.S. Tax Court petition seeking determination of substantial compliance with Code Section 1042 requirements for excluding gain on sale of shares to ESOP where accountant had failed to include required elections with tax return.

Represented taxpayer in prosecution of U.S. Tax Court petition and settlement with IRS pertaining to issue in connection with excess retirement plan contributions to 403(b) annuity and self-employed Keogh plan.

Successfully defended accounting firm in malpractice trial from union pension fund claims that it failed to timely advise the fund of need to make certain required pension plan amendments to maintain tax-qualified status.

Successfully defended client from claim by multiemployer pension plan for withdrawal liability on grounds of controlled group, alter ego and evade and avoid.

Assisted former bank president in settling claims of breach of fiduciary duty and prohibited transactions brought by U.S. Department of Labor arising out of sale of shares to bank holding company ESOP.

 

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