Department of Labor (DOL) Archives - EMPLOYEE BENEFITS BLOG

ESOP Litigants Play by Their Own Valuation Rules

by Richard J. Pearl | Aug 27, 2020 | Benefit Controversies, Digital Health, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans

Imagine if you were playing on a baseball team and the opposing players argue that you are violating the rules of soccer. That’s what it’s like when private parties and the Department of Labor (DOL) challenge Employee Stock Ownership Plan (ESOP) valuations. Plaintiffs play a very different valuation ballgame, which confounds experts who go up against them in a dispute involving allegations that an ESOP paid more than “fair market value” for stock of the sponsor company. In a recent webinar, McDermott attorney Richard Pearl discussed valuation concepts and some fundamental issues under the Employee Retirement Income Security Act.

Fair Market Value: Are the DOL & Some Courts Getting It Wrong?

by Richard J. Pearl | Aug 18, 2020 | Employee Stock Ownership Plans (ESOPs)

McDermott’s Rick Pearl took part in the NCEO 2020 Employee Ownership Virtual Conference. In his presentation, Pearl gave an overview of ERISA standards for an ESOP transaction, discussed fair market value, and whether the US Department of Labor and some courts are getting it wrong.

Access the presentation.

New Hurricane Legislation Grants Additional Distribution, Withdrawal and Loan Relief for Certain Retirement Plan Participants

by Alan D. Nesburg, PC, Diane Morgenthaler, Ruth Wimer and Stephen Pavlick | Nov 9, 2017 | Employee Benefits, Retirement Plans

The new Disaster Tax Relief and Airport and Airway Extension Act of 2017 provides additional relief and flexibility for retirement plan participants impacted by recent hurricanes, including relaxed rules for plan distributions, withdrawals and loans.

No Good Deed Goes Unpunished: Inferior Parental Leave Policies Can Result in Discrimination Claims

by McDermott Will & Emery and Jeremy White | Oct 19, 2017 | Benefit Controversies, Employee Benefits, Employment, Health and Welfare Plans, Labor

To recruit and retain top talent, employers often offer benefits more generous than required under the law. Such benefits include unlimited vacation, paid maternity leave and paid paternity leave. However, a recent US Equal Employment Opportunity Commission (EEOC) lawsuit filed against Estee Lauder Companies, Inc. (Estee Lauder) reveals how even the most well-intentioned of programs can result in a discrimination lawsuit.

Are Your Employee Communications Up to Snuff? — ERISA Disclosure Practices

by McDermott Will & Emery and Allison Wilkerson | Oct 12, 2017 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Health and Welfare Plans, Retirement Plans

Mary Samsa and Allison Wilkerson discussed that the majority of ERISA disclosures are in fact employee communications – many of which are viewed as “routine” by employers. As such, plan sponsors are continually balancing the best way in which to relay complex benefit plan information in a manner to best be understood by employees but equally satisfy the applicable regimented disclosure requirements. Some key takeaways from their presentation included not only the compliance and content requirements, but methods for delivering communications to employees, traps for the unwary (i.e., inconsistent information communicated, the advantage of having these communications reviewed by legal counsel, and oversight of third parties who assist in preparing communications) and some common sense approaches for routine reviews of communications and continuing education to participants so that periodic communications are not always monumental tasks.

View the full presentation.

View From McDermott: Hurricane Survival Guide for Employee Benefit Plans and Employers

by Diane Morgenthaler | Oct 5, 2017 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Employment, Health and Welfare Plans, Retirement Plans

According to U.S. News & World Report, estimates for the cost of Hurricane Harvey’s damage have come in as high as $190 billion, and damage estimates for Hurricane Irma are still rolling in but range up to $100 billion. To assist taxpayers affected by these devastating storms, the Internal Revenue Service, Department of Labor, and Pension Benefit Guaranty Corporation have granted multiple forms of relief to taxpayers impacted by Hurricane Harvey, Hurricane Irma, and other disasters enumerated by the Federal Emergency Management Agency.

Hurricane Harvey Relief for Employee Benefit Plans

by Allison Wilkerson and Diane Morgenthaler | Sep 7, 2017 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Employment, Fiduciary and Investment Issues, Health and Welfare Plans, Labor, Retirement Plans

The Internal Revenue Service and the Department of Labor relaxed some deadlines for eligible employee benefit plans and expanded the availability of withdrawals and loans for eligible defined contribution plan participants in the disaster area. However, the Pension Benefit Guaranty Corporation announced that some of its required filings will not be extended automatically.

View From McDermott: Employee Benefit Plan Considerations for Health Systems in 2017

by Jeffrey Holdvogt and Mary K. Samsa | Apr 4, 2017 | Employee Benefits, Health and Welfare Plans

Amy Gordon, Jeffrey Holdvogt, Susan Nash and Mary Samsa wrote this bylined article on health system employee benefit opportunities and challenges in 2017. The authors urged health systems to review internal controls for 403(b) plan compliance and new design opportunities for 457(f) plans, to review their short- and long-term health plan operation in light of any Affordable Care Act replacement.

Read the full article.

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