Past Event : Apr 09, 2020

TRUCKER HUSS WEBINAR: ERISA and Tax Considerations for Severance Benefit Plans

DATE: Thursday, April 9th

TIME: 10:00 AM – 11:00 AM PDT

PRESENTERS: Marc Fosse and Mary Powell

As the shelter-in-place timelines are extended, many employers are faced with decisions about whether to provide severance pay or benefits in connection with a reduction-in-force or layoff.  Designing and implementing a severance benefit plan, or drafting a severance agreement, involves complex compliance issues under the Employee Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (“Code”).  Failure to comply can result in severe penalties under both ERISA and the Code.  In this webinar, we will discuss the relevant legal requirements and share our best practices for severance benefit plans, which we have developed over decades of advising clients on implementing and administering severance benefit plans.

Topics this webinar will discuss:

  • Some critical differences between a furlough and a layoff
  • Application of ERISA to severance plans and the employer protections under ERISA for severance plans
  • Application of the “serious consideration” doctrine when preparing to adopt or amend a severance plan
  • Whether the severance benefits are subject to Code Section 409A
  • Tax and contract issues related to providing medical benefits post-termination
  • Best practices for drafting and administering severance benefit plans

Questions or Comments: Contact:

MCLE Credit: This program is eligible for Continuing Legal Education (CLE) credit. Please contact Joe Harrison at to receive a CLE certificate of completion.

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