This session will assist HR professionals navigate the world of mergers and acquisitions as they relate specifically to benefit plans and qualified retirement plans. This session will discuss timing issues, potential issues that can cause delays in closing, how to deal with those potential issues, and how to handle employee relations issues as they arise. For benefit plans, these issues may come from cafeteria plans and how FSA accounts should be/can be handled, COBRA responsibilities, and MEWA issues. For qualified retirement plans, there are notice and timing rules that must be followed as well as qualification issues that may be discovered during the due diligence process. This session is for every HR professional who handles the administration of their company benefit plans and qualified plans.
The DOL has said that plan fiduciaries must review if their plan expenses are "reasonable". First one must understand where all the plan expenses lie. What is revenue sharing and how does it affect my duties as a fiduciary to a retirement plan? Many Plan Sponsors use revenue sharing to pay some if not all of the plan's administrative costs. The term revenue sharing refers to payments made by investments to a third party. In Field Assistance Bulletin 2003-03, the DOL indicated that allocating plan expenses is a fiduciary decision and requires fiduciaries to act prudently. There are several methods of paying for the plan's administrative services.
Mergers and Acquisitions as well as large lending transactions raise a host of employee benefits issues, many of which can be avoided with proactive attention. Recent case law developments (such as the Sun Capital Partners case) underscore the importance of spotting and handling potential employee benefits issues well before the “deal” is about to close. This panel will walk attendees through the top employee benefits issues that commonly arise in an M&A transaction (including 401(k) and other qualified plans, health and welfare plans and executive compensation plans) and give practical tips for handling these issues on a proactive basis, starting with due diligence and continuing through and after the deal has closed.