Media Mentions
2012
“What Is a Frequent Flier Mile Worth?”
Tax Notes Today, February 6, 2012
Ira Mirsky, noting the lack of IRS guidance on the tax treatment of banks awarding frequent flier as promotions, gave his preference for a bright-line valuation rule that would borrow from current approaches to determining the fair market value (FMV) of such taxable noncash fringe benefits as employer-provided cars. Because the IRS requires taxpayers to include the FMV of these mileage awards in gross income for the year they were received, Mr. Mirsky suggested that banks offering the miles as a premium might “reconsider whether miles are a good reward in this context.”
Ira B. Mirsky, Employee Benefits
“Treasury Makes Retirement Savings Push as Guidance Aims to Reduce Regulatory Burdens”
Tax Notes Today, February 3, 2012
Brian Benko singled out new regulations on retirement savings from the Treasury Department and the IRS as being linked by a common purpose of promoting guaranteed income streams throughout an employee’s retirement, through new options that are not intended to create administrative burdens for employers and plan sponsors.
Brian A. Benko, Employee Benefits
“Firm Life”
Chicago Lawyer, February 1, 2012
Erin Arnold, Kevin Miller, Brett Johnson and Maureen O’Brien, Amol Parikh and Adam Sherman were cited as the six McDermott Chicago office lawyers among 29 recently named to the Firm’s partnership.
Erin Arnold, Brett R. Johnson, Kevin L. Miller, Maureen O'Brien, Amol Parikh, Adam Sherman, Airport & Aviation, Employee Benefits, Health, Intellectual Property, IP Litigation, Private Client, Trial
“High Court Applebee’s Ruling Could Hike Payroll Costs”
CFO.com, January 19, 2012
Linda Doyle commented on the U.S. Supreme Court’s refusal to reconsider an Eighth Circuit ruling on tipping. In effect, the Supreme Court upheld a lower court ruling that workers who regularly receive tips should be paid full minimum wage under certain conditions. "The Court’s denial means that the 8th Circuit Court decision stands, and the case will go to trial," said Ms. Doyle. "No matter what the final outcome of the suit, the decision to uphold the rule will set a precedent in the 8th Circuit," she added.
Linda M. Doyle, Employee Benefits
“E&Y Covering Tax Costs of Domestic Partner Health Benefits Offered Same-Sex Couples”
Bloomberg BNA Daily Tax Report, January 11, 2012
Todd Solomon said that, due to the higher federal tax on health care benefits for domestic partner/same-sex couples, “domestic partner benefits are a completely tax-inefficient way to cover a partner.” Mr. Solomon noted that although employer gross-up policies to cover the higher tax “are not always a make-whole remedy, they could create an incentive for more people to participate in their employer's plan,” adding that “a number of clients” are asking him about instituting such policies.
Todd A. Solomon, Employee Benefits
2011
“New ISS Guidance on Say on Pay Requires Ramping Up Now”
Corporate Board Member, December 23, 2011
Andrew Liazos urged companies to begin preparing now for peer review tests that Institutional Shareholder Services (ISS) will require for proxy documentation of executive pay standards, a preparation that should include “reaching out to the shareholders to understand their concerns." Liazos explained that, "When ISS comes up with peer groups, there may not be a correlation between those peer groups and the ones the [company’s] compensation committee comes up with. ...So you really don’t know how this is going to come out until you go through the numbers.”
Andrew C. Liazos, Employee Benefits
“Law Firms Lend Helping Hand to Organization”
Chicago Lawyer, December 15, 2011
Todd Solomon discussed how his legal action to secure appropriate special education for his son led to his pro bono work for nonprofit advocacy organization Equip for Equality. “I experienced firsthand how difficult the special education process was to navigate, even as a lawyer,” Mr. Solomon said. “It’s pretty complicated from a legal standpoint to know what your rights are and how to enforce those rights.” Mr. Solomon is pro bono co-chair for the Chicago office, and McDermott is one of 14 law firms giving pro bono help to Equip for Equality.
Todd A. Solomon, Employee Benefits, Pro Bono & Community Service
“Deadline for Puerto Rico Plan Spinoffs Approaching”
Tax Notes Today, December 6, 2011
Andrew Liazos cited “complexity and double tax issues” as reasons for sponsors of U.S. and Puerto Rico dual qualified retirement plans to spin the plans off tax-free before December 31. One key issue is the apparent IRS position that Puerto Rico plans do not qualify for group trust arrangements that Mr. Liazos said “provide economies of scale and unique investment opportunities” available to U.S. employees. He added that he is “hopeful there will be permanent relief for Puerto Rico-only plans or at least another extension” of the spin-off deadline.
Andrew C. Liazos, Employee Benefits
“Tax Break for Transit Benefit Set to Expire at End of 2011”
SHRM Online, December 6, 2011
Ira Mirsky warned that if Congress does not extend the December 31 expiration of tax exclusions on employer-provided transit passes for employees, “Most employers will be left to pick up the pieces in this tough economy, and labor under higher payroll taxes at the same time.” Expiration would make employers and employees “feel like the rug is being pulled out from under them” due to the advance compensation planning needed in the event of expiration.” He urged Congress to remember that the purpose of the benefit is “to reduce pollution and traffic by creating incentives to encourage more commuters to use mass transit.”
Ira B. Mirsky, Employee Benefits
“Young Folks at the Bar”
Legal Bisnow, December 2, 2011
Brian Benko was pictured as one of nine Washington, DC lawyers taking part in round one of the DC Bar Foundation’s Young Lawyers Network.
Brian A. Benko, Employee Benefits
“Proof of Civil Union May Mirror Employer’s Proof of Marriage Requirements”
Society for Human Resource Management, November 30, 2011
Todd Solomon noted that many employers have evened up the documentation (including proof of marriage) that they require for heterosexual and gay couples when adding a spouse to health care coverage. This evening up can mean either requiring all couples to show proof of marriage or civil union or dropping the civil union requirement for gay couples, Mr. Solomon said, and it in part reflects compliance with the Human Rights Campaign Equality Index.
Todd A. Solomon, Employee Benefits
“IRS Releases Sample Plan Amendment That Addresses Benefit Restrictions”
Tax Notes Today, November 30, 2011
David Rogers, commenting on a new IRS sample plan amendment for certain employee benefit plans, said that such sample documents “are always welcomed so that practitioners have a better sense of what is acceptable language to the IRS.” Brian Benko agreed, comparing sample plan amendments to Lego blocks: “If you stack [them], you’re guaranteed, more or less, to connect with the terms that are already in the plan, and you can start building on top of it and pick and choose which blocks you want to use.”
Brian A. Benko, David E. Rogers, Employee Benefits
“Power Circuit: Morgan Lewis Loses One Partner, Gains Another”
Washingtonian, November 30, 2011
Christopher May, Rita Weeks, David Crump, Alison Levin Nadel, Nathaniel Dorfman, Caroline Hong Ngo, Timothy Shuman, Amy Hooper Kearbey, Joanna Kerpen were cited as the Firm’s ten new Washington, D.C. partners effective January 1, 2012. The article also said that the Firm welcomed a new partner from Morgan Lewis & Bockius, Karol Lyn Newman who has joined the Energy Advisory practice.
David O. Crump, Nathaniel J. Dorfman, Amy Hooper Kearbey, Joanna C. Kerpen, Christopher L. May, Alison Levin Nadel, Karol Lyn Newman, Caroline Hong Ngo, Timothy S. Shuman, Rita Weeks, Employee Benefits, Energy Advisory, Health, Intellectual Property, International Tax, IP Litigation, Patent Prosecution, Tax
“Movers & Shakers: Nov. 29, 2011”
Deal Pipeline, November 29, 2011
The 29 lawyers named new partners in McDermott for 2012 were listed. They come from 10 different practice areas and groups, with Tax, Employee Benefits and Trial having the most representatives.
“In the Law Firms”
Chicago Daily Law Bulletin, November 28, 2011
Erin Arnold (Trial), Brett Johnson (Employee Benefits), Kevin Miller (Health), Maureen O’Brien (Employee Benefits), Amol Parikh (Intellectual Property) and Adam Sherman (Private Client) were the Chicago office lawyers among the 29 new global partners that McDermott announced effective January 1, 2012.
Erin Arnold, Brett R. Johnson, Kevin L. Miller, Maureen O'Brien, Amol Parikh, Adam Sherman, Employee Benefits, Health, Intellectual Property, Private Client, Trial
“Woman May Lose Same-Spouse’s Death Benefits to Homophobic In-Laws”
Lawyers.com, November 23, 2011
Todd Solomon explained that because the federal Defense of Marriage Act and some state statutes define marriage as being between opposite-sex spouses, same-sex spouses and their employers face issues under ERISA and IRS rules when designating spousal beneficiaries for employee benefit plans. “Employers … need to do careful plan drafting and they need to define the word ‘spouse,’” Mr. Solomon said, while “for employees, you should always name your beneficiary.”
Todd A. Solomon, Employee Benefits
“The Most Tax-Savvy Use of a Health Savings Account”
Forbes, November 21, 2011
Susan Nash explained that that employees at companies with health savings accounts need to get used to high-deductible health plans by paying out-of-pocket for health expenses using tax-advantaged HSA funds up to the deductible limit. “It’s a different mindset writing a check for $300 instead of $20 [with an HMO or PPO health plan],” she said.
Susan M. Nash, Employee Benefits, Health and Welfare Benefit Plans
“401(k)s: Watch Out for Speed Bumps”
CFO.com, November 15, 2011
Joseph Adams advised that fast-growing companies can avoid discrimination problems with 401(k) plans that are over-weighted in key executive contributions, saying, ““You can basically buy your way out of the discrimination tests by setting up matching safe harbors.” Mr. Adams noted that options to do this and achieve safe-harbor status include employers committing to match at least 3% of employees’ contributions, vesting the contributions faster, and in some cases automatically enrolling employees in the plan.
Joseph S. Adams, Employee Benefits
“DC Bar Foundation Names Members of New Young Lawyers Network”
Blog of Legal Times, November 9, 2011
Joshua Rogaczewski and Brian Benko were among nine Washington-area lawyers named to a new legal network created to provide increased access to justice for D.C. residents. “I think everyone knows there is an acute need for legal services in the district for individuals who otherwise wouldn’t be able to afford them,” Mr. Rogaczewski stated. “We want to utilize our talents to give back to the community.”
Brian A. Benko, Joshua D. Rogaczewski, Employee Benefits, Trial
“Robocalls Gaining Popularity”
Fox 25 Boston, November 8, 2011
Heather Egan Sussman explained in this televised interview that automated, pre-recorded informational “robo-calls” for charities or political candidates are not covered under federal telemarketing rules and “Do Not Call” registries. This means that callers “don't need prior written permission [the consumers] to recieve those calls. Because this is “a gray area,” Ms. Sussman said, “what we have seen over the last few years is the emergence of companies that are for hire and able to send out these types of pre-recorded phone calls.” Click here to view the full segment.
Heather Egan Sussman, Employee Benefits, Global Data Privacy Programs
“Most of U.S. Unemployed No Longer Receive Benefits”
FOX News, November 6, 2011
Linda Doyle discussed in this nationally-televised interview some key considerations for recently-terminated employees. While seeking legal counsel “is a very personal decision,” she said, “there can be no harm in at least consulting with a lawyer, but I think it’s critical to manage your lawyer. I’ve seen employees … paying too much money essentially to negotiate nothing.” If given a written termination agreement, Ms. Doyle added, employees should never sign anything immediately, or in the heat of the moment. Click here to view the full segment.
Linda M. Doyle, Employee Benefits
“Pro Bono: In Their Words”
Chicago Lawyer, November 1, 2011
Todd Solomon expressed appreciation that McDermott supports his pro bono and community involvement activity, saying “the fact that I even get the opportunity to do this as part of my job is awesome.” Mr. Solomon was also thankful for “the gratitude and appreciation shown by pro bono clients. Nothing feels better than helping someone in need who would not otherwise have the means to obtain legal assistance.”
Todd A. Solomon, Employee Benefits
“IRS Announces 2012 COLA Limits for Qualified Plans”
Federal Tax Weekly, October 27, 2011
Todd Solomon observed that, “unlike in 2011, when retirement plan [contribution and benefit] limits remained largely unchanged, there are several notable increases for 2012.” He cited such factors as the increases in the Social Security wage base, the maximum 401(k) contribution and the threshold for defining highly compensated employees. “The result of many of these increases,” Mr. Solomon concluded, “will be greater employee savings under tax-qualified retirement plans.”
Todd A. Solomon, Employee Benefits, Qualified Retirement Plans
“Last Chance: Orthodontia or Lasik Up to 40% Off”
Forbes, October 20, 2011
Susan Nash advised that most employers limit employee healthcare flexible spending account contributions to between $3,500 and $5,000 pretax a year, with some limits as high as $8,000 – all well as above the $2,500 limit that begins in 2013. She noted, however, that at employers with high deductible health insurance plans, a limited purpose FSA may only work once that deductible is met.
Susan M. Nash, Employee Benefits
“SEC Guidance on Cybersecurity Aims to Keep Investors Informed”
Corporate Counsel, October 18, 2011
Amy Leder said that new SEC guidance for companies to disclose material cybersecurity risks calls for answering the potential investor’s question, “When I’m investing in your stock, is this something I need to worry about?” In particular, she noted, if a real or potential incident “rises to the level of materiality,” it might warrant disclosure in Form 10-Q and 10-K filings. Heather Egan Sussman called disclosing the right amount of information about cyber risks a “balancing act,” in which the many companies that already undertake a “normal evaluative process” to assess those risks will have the job of “translating it into their public-facing documents.”
Amy S. Leder, Heather Egan Sussman, Corporate, Employee Benefits
“Opposite-Sex Couple in Civil Union Assail NU’s Health Insurance Rules”
Chicago Tribune, October 14, 2011
Todd Solomon noted that it has been common for employers to offer benefits to unmarried same- sex partners, but not to unmarried opposite-sex partners, who have the option to get married. Given the potential problems from this, he added, such benefit provisions are “something an employer needs to think through, how the benefits are going to be perceived and what are the employee-relations concerns.”
Todd A. Solomon, Employee Benefits
“Privacy Breaches Leave State Agencies Open to Liability”
Law360, October 6, 2011
Heather Egan Sussman, noting that data security breaches by hackers against state and local government agencies are increasing, called such organizations “vulnerable entities, and yet these entities have some of the most sensitive data on citizens.” Although officials acting in good faith generally cannot be sued, she warned that they may in some instances be held personally liable for a data loss if they are found negligent. Ms. Sussman advised local governments to follow the federal data security lead “by coming up with a uniform set of guidelines. There hasn’t been the same coherent strategy for state and local agencies, but there should be.”
Heather Egan Sussman, Employee Benefits, Global Data Privacy Programs
“McDermott Wins Asylum for Woman in Trafficking Case”
Chicago Daily Law Bulletin, September 21, 2011
Brett Johnson said that a McDermott pro bono team won asylum for a sex trafficking victim from Democratic Republic of Congo by “present[ing] the case as one of persecution” because “the odds of her being sex trafficked again were very high.” On the team with Mr. Johnson were Brett Bachtell, Mennatallah Eltaki, Katherine Schon and Sandra McGill (who as a French speaker did most of the communication with the client). Pro Bono Counsel Latonia Haney Keith said the team’s success “speaks a lot to the quality of work and dedication” the firm has in asylum cases.
Brett E. Bachtell, Brett R. Johnson, Latonia Haney Keith, Sandra P. McGill, Katherine M. Schon, Employee Benefits, Intellectual Property, Pro Bono & Community Service, Tax
“Same-Sex Partner and Spouse Benefits”
SHRM.org, Society for Human Resource Management, September 2011
Todd Solomon said “employers that are the most care-minded about providing domestic partner benefits and are on the cutting edge of benefits” are increasingly providing tax gross-ups that cover the additional federal tax that same-sex domestic partners or spouses must pay. Noting that this is a relatively recent trend, Mr. Solomon added that “some of the first [employers] to offer domestic partner benefits are the ones who are behind right now because they haven’t re-examined” new developments like the gross-ups.
Todd A. Solomon, Employee Benefits
“Required Benefits”
SHRM.org, Society for Human Resource Management, September 2011
Todd Solomon in this video reminded employers with a fully insured health plan for employees in a state that recognizes same-sex relationships that they “will be legally required” to offer the benefits to same-sex spouses or domestic partners. Mr. Solomon added that “the recent trend among employers is to create spousal parity” in all benefits requirements, including with regard to proof required to verify a relationship.
Todd A. Solomon, Employee Benefits
“Dominique Strauss-Kahn Sexual-Assault Case Outlook”
Bloomberg Television, August 23, 2011
Jilali Maazouz said in this televised interview that, despite the dismissal of criminal charges, the current public image of the former IMF head “is not one that would allow him to come back immediately to his status before this matter.” Mr. Maazouz predicted that Strauss-Kahn would “need a lot of time” to rebuild his public and political images, and added about the upcoming French presidential election: “I don’t see him involving himself deeply in the campaign or in French political affairs.” To watch the video click here.
Jilali Maazouz, Employee Benefits
“Global Privacy Laws Advance to Keep Pace with EU”
Law360, August 16, 2011
Heather Egan Sussman pointed out that new technologies such as cloud computing are leading other countries to implement strict data privacy rules like those of the European Union. “Jurisdictions that want to attract this aspect of e-commerce face obstacles if they do not have an adequate regulatory environment,” she stated, adding that “demanding greater privacy protections” allows these countries to attract new business that meets EU standards. Henry Chen of MWE China Law Offices agreed, noting that Thailand, for example, is strengthening its privacy regime, which now only applies to the public sector.
Heather Egan Sussman, Employee Benefits
“EU ‘Right to Be Forgotten’ Only Good in Theory: Attys”
Law360, August 10, 2011
Heather Egan Sussman suggested that the European Union proposal to force businesses to erase all traces of consumer’ electronic data at their request “could actually make the chasm between the EU and the U.S. much wider” in terms of data privacy requirements. “The goal, I think we can all agree, is to try to bring the U.S. and the EU closer,” she added. “I think there’s no question that uniformity in the law helps business. Lack of uniformity only helps the lawyers.”
Heather Egan Sussman, Employee Benefits
“Local and State Agencies More Vulnerable to Hacker Attacks”
Los Angeles Times, August 9, 2011
Heather Egan Sussman explained that until now state and local government agencies “were not viewed as being in particular risk of being targeted by hackers,” so their “focus has not been on IT security to the same degree that the more visible and the larger entities have paid to it.” Ms. Sussman added that although these agencies can seek more funding for security experts, updated hardware and software, and training, “if you have one employee at work who double-clicks a link and inadvertently downloads malware, the hacker can be off and running.”
Heather Egan Sussman, Employee Benefits
“Experts: Small Targets No Match for Savvy Hackers”
Associated Press, August 8, 2011
Heather Egan Sussman, assessing the risk that hackers pose to state and local government computer systems, stated that even though these government computers “are housing some of the most sensitive data about citizens and residents, … what we’re seeing are state and local agencies that are underfunded, overworked, overstressed” and unable to afford the data privacy measures they need.
Heather Egan Sussman, Employee Benefits
“Tweaking ‘Target” Lineups”
The Wall Street Journal, August 8, 2011
Joseph Adams noted that companies are increasingly skeptical of standardized target-date mutual funds as 401(k) investment choices because “plan sponsors recognize that simply taking an ‘off the shelf’ solution may not be the best choice” for employees. Mr. Adams added that “a lot of people are looking … more seriously” at customized funds instead, because “if you do more of the work, you get the savings. But,” he concluded, “it has to be done … properly.”
Joseph S. Adams, Employee Benefits
“Gay Marriage Laws Leave Disparities in Federal Tax Treatment”
Bloomberg News, July 28, 2011
Todd Solomon said employers that reimburse same-sex married and domestic partner couples for the higher federal taxes they pay on health care benefits compared to heterosexual couples do so as a matter of fairness, “to reward our people equally with their opposite sex counterparts.” McDermott was listed as one of 19 employers identified by the Human Rights Campaign for providing such reimbursement.
Todd A. Solomon, Employee Benefits
“Same-Sex Spouses in New York Will Get Health Insurance”
The New York Times, July 5, 2011
Todd Solomon said that, although New York State has legalized same-sex marriage, employers with self-insured plans that pay for health benefits from their own assets are not subject to the state’s insurance laws and thus are not required to cover same-sex spouses.
Todd A. Solomon, Employee Benefits
“Deferred Compensation Lets Executives Avoid 401(k) Saving Caps”
Bloomberg News, June 29, 2011
Andrew Liazos said that executives who choose to take distributions from nonqualified deferred compensation plans over a period of at least 10 years may save substantially if they move from a high-tax jurisdiction such as New York to a non-income tax state like Florida. He explained that, under federal law, the state where taxpayers earned deferred compensation cannot tax the income if the recipient moves and receives it in equal installments over 10 or more years.
Andrew C. Liazos, Employee Benefits
“IRS Proposal Aims to Help Small Businesses Establish Retirement Plans”
Tax Notes Today, June 20, 2011
Brian A. Benko discussed the IRS Advisory Committee on Tax Exempt and Government Entities (ACT) proposal to create an employee benefits pro bono clinic. McDermott would staff a one-year pilot program through the John Marshall Law School, helping small businesses implement qualified employee retirement plans. “The proposed clinic would combine McDermott’s employee benefits expertise with its strong sense of social responsibility,” Mr. Benko said. “Helping small businesses comply with the law benefits those employees who might not otherwise have access to a qualified retirement plan.”
Brian A. Benko, Employee Benefits
“India Privacy Rules Raise Alarms”
Compliance Week, June 14, 2011
Heather Egan Sussman called new data privacy rules in India “a major development, particularly for companies that outsource to India where the business involves sensitive personal data as defined by this law.” Ms. Sussman said the law puts “its own spin” on such concepts as notice, consent, opt-in and data security, which “may make it difficult to proceed with business as usual.”
Heather Egan Sussman, Employee Benefits
“Equal Benefits Gain Ground”
SHRM HR Magazine, June 2011
Todd Solomon observed that companies increasingly offer COBRA-equivalent health benefit coverage to employees with same-sex domestic partners or spouses, and those firms that cover all spouses must do so in states that recognize same-sex marriage or civil unions. However, Mr. Solomon also noted that because federal law regards benefits for same-sex partners as a fringe benefit and thus part of taxable income, “You’re treating as taxable income something for federal law but not for state law. It’s what most employers get wrong.”
Todd A. Solomon, Employee Benefits
“Supreme Court Decision Curbs Pension Plan Liability”
Business Insurance, May 23, 2011
Nancy Ross said that if courts could rewrite benefit plan terms – as lower courts in effect did by upholding provisions contained in a summary plan document but not in the plan itself, rulings overturned by the Supreme Court’s Cigna decision – it would have a “chilling effect” on the willingness of employers to offer such benefits.
Nancy G. Ross, Employee Benefits, Trial
“For Gay Employees, an Equalizer”
New York Times, May 20, 2011
Joseph Adams estimated that it would cost an employer about $2,000 to $2,500 to increase (“gross up’) the pay of an employee to cover the extra federal taxes of $1,200 to $1,500 on the health benefits of a same sex partner. Although the numbers will vary depending on such factors as the employee’s tax bracket and state of residence, Mr. Adams assumed a 25% federal tax rate and additional state, local, and employment taxes that make a total rate of about 40%.
Joseph S. Adams, Employee Benefits
“Companies Dodge Benefits Bullet”
Human Resource Executive Online, May 19, 2011
Nancy Ross said that the U.S. Supreme Court’s decision in Cigna Corp. v. Amara – that employees could not sue to receive pension benefits described in a summary document but not in the plan itself – “changed the burden of proof from employer to employee” and could make it difficult for employees to claim class damages. Ms. Ross added that the decision, which reversed a district court ruling, “has given no guidance in how the District Court should go about determining whether a participant suffered actual harm.” She advised, however, that employers “have to be forthcoming” in telling employees about plan terms and changes.
Nancy G. Ross, Employee Benefits, Trial
“Legal Impact of Cigna Corp. v. Amara on Benefits Communication”
SHRM Online, May 16, 2011
Nancy Ross said that the U.S. Supreme Court’s expected ruling in the Cigna case would likely address the key issue of whether employees who sued because a company misstated benefit plan coverage in plan summary documents, “must first show, in addition to proving the mistake, that they relied on the misrepresentation to their detriment.” She explained that “some courts have required proof of reliance, while others have not,” and added that “because reliance is hard to prove … a requirement of reliance will make it much harder for employees and retirees to succeed in such benefits cases.”
Nancy G. Ross, Employee Benefits, Trial
“Clawbacks Revisited”
CFO.com, May 12, 2011
Andrew Liazos, in this bylined article, wrote that the Dodd-Frank Act’s rules for public companies to implement compensation recovery (clawback) policies toward executive officers if financial results must be restated have “potential far-reaching impact” that “will require significant changes” for many companies. “It is reasonable to anticipate that these rules, in combination with other factors, may result in serious reconsideration of how incentive-compensation plans are designed,” Mr. Liazos wrote, adding that “sorting out … the potential accounting ramifications of the new rules will not be simple or quick.”
Andrew C. Liazos, Employee Benefits
“High Profile Data Breaches Raise Security Alerts”
Compliance Week, May 3, 2011
Heather Egan Sussman warned companies about “the major costs and risks” from an online criminal security breach, saying, “It’s not just that they’re stealing your money or stealing your trade secrets, they can disrupt your entire business for days.” She urged “addressing the human element” as an important defense strategy, such as training employees not to open emails with infected attachments or not to use wireless Internet connections to company data systems that hackers can exploit in public places. Ms. Sussman said hackers are no longer interested in “the smash and grab … [for] one or two credit card numbers” – they are “waiting for the big hit.”
Heather Egan Sussman, Employee Benefits
“Law Firm Opens in Paris”
Financial News, May 2, 2011
McDermott’s new Paris office was cited as an expansion of the Firm’s “international platform,” with new partners Jacques Buhart, Thibaud Forbin, Hervé Bidaud and Jilali Maazouz noted.
Hervé Bidaud, Jacques Buhart, Thibaud Forbin, Jilali Maazouz, Corporate, Employee Benefits, Tax
“Department of Labor Proposes Additional Disclosure Rules for QDIAs and TDFs”
BNA Tax and Accounting Report, May 2011
Paul Compernolle, Diane Morgenthaler and Lisa Loesel, writing in this bylined article, described proposed regulations requiring additional disclosures for a participant’s investment in qualified default investment alternatives (QDIAs) and target date funds (TDFs). The proposed regulations will impact plan sponsors, fiduciaries and administrators, and the authors urged these entities to familiarize themselves with the new requirements now, as the comment period has expired and the rules will become effective 90 days after their publication in final form.
Paul J. Compernolle, Lisa K. Loesel, Diane M. Morgenthaler, Employee Benefits
“McDermott Will & Emery Opens in Paris”
Lawyer Monthly (UK), April 26, 2011
Jacques Buhart, head of the new Paris office, said that the new lawyers are “all delighted to join McDermott,” praising the Firm’s “strong capabilities” and “overarching platform for each of us to service French and international clients in their … operations and litigations.” Mr. Buhart added that the new office team consists of “former colleagues who share the same vision … [that] will help us quickly become one of the major players in the Paris market.”
Jacques Buhart, Antitrust & Competition, Corporate, Employee Benefits, Tax
“McDermott to Open Paris Office”
American Lawyer, April 26, 2011
Peter Sacripanti said that the opening of the Firm’s Paris office (its seventh in Europe) has been “a strategic target for over a decade,” made possible by finding “the right partners to fit our platform and culture.” Jacques Buhart, who joins McDermott as head of the new office and who expects the majority “if not all” of his major clients to follow him, said that the office’s 12-lawyer team “has a track record of achieving growth at each of our former firms, and we are nurturing the same ambition at McDermott.”
Jacques Buhart, Peter John Sacripanti, Antitrust & Competition, Corporate, Employee Benefits, Tax
“Who’s In, Who’s Out”
Deal Pipeline, April 25, 2011
Jacques Buhart (corporate and competition law), Thibaud Forbin (mergers and acquisitions), Hervé Bidaud (tax) and Jilali Maazouz (labor and employment) were all noted for their extensive experience and diverse backgrounds before joining McDermott as partners in the new Paris office.
Hervé Bidaud, Jacques Buhart, Thibaud Forbin, Jilali Maazouz, Antitrust & Competition, Corporate, Employee Benefits, Mergers & Acquisitions, Tax
“McDermott Builds Paris Base around Herbies Hire”
The Lawyer (UK), April 25, 2011
Hugh Nineham, head of McDermott’s European practice, called the Firm’s announcement of a new Paris office “an exciting moment for us.” He noted that the office, to be headed by former Herbert Smith partner Jacques Buhart, means, “Now we can say to [clients], ‘Call us in Paris,’ and that will open a number of doors for us.”
Jacques Buhart, Hugh Nineham, Antitrust & Competition, Corporate, Employee Benefits, Tax
“The Danger of Fiduciary Status for Valuation Firms”
Law360, March 18, 2011
Jonathan Boyles and Jeffrey Rothschild wrote that proposed Department of Labor (DOL) regulations defining valuation firms as ERISA fiduciaries could lead those firms to exit the market because of the personal liabilities imposed on fiduciaries for breach of the stringent “prudent man” rule. The alternative for such firms is to purchase expensive fiduciary liability insurance, which raises their costs.
Jonathan J. Boyles, Jeffrey Rothschild, Corporate, Employee Benefits
“Federal Government Refuses to Defend Defense of Marriage Act -- So Now What”
Huffington Post, March 16, 2011
Todd Solomon called the U.S. government’s decision to no longer defend the Defense of Marriage Act, “of huge symbolic significance,” because it would “seem to create a higher possibility that DOMA will be held unconstitutional by the United States Supreme Court. This ultimately would mean that same-sex couples can receive all of the over 1,100 federal rights and benefits that opposite-sex couples receive.” Until then, however, Mr. Solomon cautioned employers that “nothing has changed with respect to the administration of benefit plans” under the Internal Revenue Code and ERISA, although he advised closely monitoring case law as it develops.
Todd A. Solomon, Employee Benefits
"Legal advisors of Humana"
Juve online, March 8, 2011
McDermott Will and Emery was mentioned as legal advisor of Humana in the merger with Nordmilch. The joint venture operates now under the name of DMK Deutsches Milchkontor.
Thomas Ammermann, Gudrun Germakowski, Uwe Goetker, Daniel Klein, Christian Neumann, Norbert Schulte, Volker Teigelkötter, Sebastian von Lossow, Corporate, Corporate - Germany, Employee Benefits, Germany, Intellectual Property, IP, Media & Tech - Germany, M&A - Germany, Mergers & Acquisitions, Real Estate, Real Estate - Germany
“Past Gazing, Future Facing”
Employee Benefit News, March 2011
Susan Nash advised employers dealing with new regulatory provisions of the health reform act to “[t]ake a deep breath after last fall, when there were so many pieces of guidance issued in such a short time frame. There's not a lot that goes into effect in 2012, so it's really going to be more clean up of what they already have issued.” She suggested that the government “did drop the ball on defining essential health benefits, [which would] help employers determine whether annual limits are applicable to certain benefits.” Although it is difficult to determine levels for 2011 plans now, Ms. Nash added that HHS “has promised to have these [definitions] out before next year, hopefully before July 1 plan years.”
Susan M. Nash, Employee Benefits, Health Care Law Reform
“A Progress Report on Gay Employee Health Benefits”
New York Times, updated March 1, 2011
Joseph Adams estimated that it could cost an employer about $2,000 to $2,500 to reimburse — or “gross up” – an employee who incurred extra federal taxes of $1,200 to $1,500 on the health benefits of a same-sex domestic partner. This assumes a 25 percent federal tax bracket and additional state, local and employment taxes that could bring the rate total to 40 percent, although the actual figure will vary by income and state of residence.
Joseph S. Adams, Employee Benefits
“Say-on-Pay Rules Include Delay for Small Companies”
Compliance Week, March 1, 2011
Andrew Liazos recommended that companies not pursuing business combinations should consider “on an issuer by issuer basis” disclosing executive golden parachute compensation plans in their annual proxies because SEC rules offer an exception to shareholder votes on such plans if a transaction occurs later. “Companies need to consider how much more disclosure they would have to provide to satisfy [the SEC rules] and whether it could tilt their [say-on-pay] vote in a negative way.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
“Shareholders Kick Off Annual Meeting Season with ‘No’ Votes”
Boardmember.com, February 17, 2011
Andrew Liazos said of shareholder no votes on executive pay packages at several companies that more such rejections are “not going to be surprising…due to general dissatisfaction with corporate financial results as opposed to problems with specific [compensation] committee actions.” He believes more companies want annual rather than triennial votes “because they can see from early voting results that the shareholders really want to have an annual say-on-pay vote.” For that reason Mr. Liazos sees companies putting “much more focus on persuasion versus compliance when it comes to the proxy disclosure” because “the primary focus has securely shifted to favorable say-on-pay votes.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
“Fight Over ACA Not Over”
Modern Healthcare, February 7, 2011
Amy Gordon used the phrase “universally hated” for the health reform law’s provision that all businesses must file a Form 1099 with the IRS for vendors paid at least $600. The Senate recently voted to repeal the provision, which Ms. Gordon said businesses had feared would drive up fees for third-party administrators required to prepare many more 1099s.
Amy M. Gordon, Employee Benefits, Health Care Law Reform
“Law360 Employment Editorial Advisory Board”
Law360, February 2, 2011
Andrew Liazos has been named to the board of leading employment law professionals who will provide editorial guidance to Law360 during 2011. Mr. Liazos, head of the Firm’s executive compensation group and the Boston office employee benefits practice, regularly advises Fortune 500 companies and other public and private employers on compensation and benefit issues.
Andrew C. Liazos, Employee Benefits
“Final Say-on-Pay Rules Include Delay for Small Companies”
Compliance Week, February 1, 2011
Andrew Liazos suggested that companies should consider “on an issuer by issuer basis” whether to make disclosure in their annual proxies about golden parachute executive compensation arrangements in certain transactions, in order to take advantage of an exception in new shareholder say-on-pay (SOP) rules if the transaction occurs later. “Companies need to consider how much more disclosure they would have to provide to satisfy [the new rules] and whether it could tilt their SPO vote in a negative way,” he said.
Andrew C. Liazos, Employee Benefits, Executive Compensation
“The Latest SOP Frequency Update”
Compliance Week, January 27, 2011
Andrew Liazos noted that because smaller companies are not required by the SEC to hold shareholder “say-on-pay” (SOP) votes until 2013, some of these companies will likely not recommend the triennial votes that larger companies now favor. He added that the bulk of any company’s efforts should be on “putting their best foot forward on pay-for-performance and making sure that information is accessible to shareholders and easy to understand.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
“Wedded Couples Have the Edge on Taxes, Benefits”
Pittsburgh Tribune-Review, January 24, 2011
McDermott was noted as one of the major employers that recently announced they would reimburse gay and lesbian employees for the extra federal tax they pay on employer contributions toward a domestic partner’s health insurance benefits.
“Multiple Venues Key to Workers’ New Litigation Plan”
Law360, January 10, 2011
Stephen Erf, speaking on the trend of employees suing employers in multiple venues, held that “the only real way to funnel all the complaints into one tribunal” is if “an employer and employee can agree to go to arbitration or mediation to handle wage payment, discrimination and other complaints.” Mr. Erf said that such a universal approach is worth it to “avoid piecemeal settlements” because “if an employer settles a wage claim, that money could be used to fund another fight against the employer in a state agency or federal court.”
Stephen D. Erf, Employee Benefits, Employee Benefits Litigation, Labor & Employment
2010
“Health Care Costs Could Swell with Former Contract Workers”
Los Angeles Daily Journal, December 17, 2010
Amy Gordon explained that because the health care reform act’s provision for employers to extend health benefits to independent contractors and temporary workers does not take effect until 2014, its immediate impact will be limited. “I don’t think it’s going to be an issue until the pay-or-play rules come into play,” Ms. Gordon said. “There’s nothing now for 2011 that would require an employer to expand its definition of an employee.”
Amy M. Gordon, Employee Benefits, Health Care Law Reform
“Firm Offers New Benefit to LGBT Employees”
Chicago Daily Law Bulletin, December 15, 2010
Todd Solomon described McDermott’s new policy of compensating employees for the additional federal tax they pay for adding same-sex domestic partners to their health benefits as “basically … giv[ing] somebody additional compensation to help pay the tax.” Mr. Solomon said of such tax gross-ups, “It’s a way to show support for that group of employees and provide equal pay for equal work,” adding that while “a very small group of companies and law firms” offer the benefit now, doing so is “definitely an emerging trend.”
Todd A. Solomon, Employee Benefits
“A Progress Report on Gay Employee Health Benefits”
New York Times, December 14, 2010
Joseph Adams estimated that it could cost an employer about $2,000 to $2,500 to reimburse — or “gross up” – an employee who incurred extra federal taxes of $1,200 to $1,500 on the health benefits of a same-sex domestic partner. This assumes a 25 percent federal tax bracket and additional state, local and employment taxes that could bring the rate total to 40 percent, although the actual figure will vary by income and state of residence.
Joseph S. Adams, Employee Benefits
“Roth Conversions in 401(k)s for Real in 2010”
Forbes.com, December 9, 2010
Joseph Adams warned that, although a new law allows employees to convert a traditional 401(k) to a Roth 401(k) late in 2010, such a move should be made carefully because company stock could get better tax treatment under net unrealized appreciation rules in traditional plans. He added that although many big employers felt it was too late to offer the conversion option this year, many more are expected to do so in 2011.
Joseph S. Adams, Employee Benefits
“Top 10 Things You Need to Know about Dodd-Frank”
Worth, December 8, 2010
Andrew Liazos said that the Dodd-Frank Act’s provision giving shareholders a vote on executive compensation is a warning to corporate boards. “The SEC sees compensation as an indicator of the relationship between the board and the CEO – does it have the backbone to stand up to him,” Mr. Liazos explained, adding that board members on compensation committees should especially be knowledgeable about company performance and peer compensation policies.
Andrew C. Liazos, Employee Benefits
“New Mass. Law Sharply Restricts Initial Questions about Job Applicants’ Criminal History”
The National Law Journal, November 30, 2010
Heather Egan Sussman stated that the new state law’s focus on job applications “is problematic for employers who don’t conduct interviews for certain positions” but instead carry out the hiring process “all in writing back and forth.” She noted other difficulties, such as a state agency fact sheet that extends the ban on criminal history questions to state residents’ out-of-state job applications even though “the legislation doesn’t say anything about jobs outside of Massachusetts.” However, Ms. Sussman advised that “employers are wise to follow guidelines in the fact sheet lest they face an enforcement action in court.”
Heather Egan Sussman, Employee Benefits
"German pilot project on anonymous applications promising equality of opportunities for all"
Die Welt, November, 22, 2010
Paul Melot de Beauregard comments on the problem of discrimination in respect of employment and occupation related to the recently started German pilot project on anonymous applications promising equality of opportunities for all.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany
"Decision of the Federal Labour Court concerning the employment contracts for managing directors"
Wirtschaftswoche, November, 22, 2010
Expert commentary by Gudrun Germakowski on the distinction in employment contracts for GmbH (limited liability company) managing directors and hence following consequences.
Gudrun Germakowski, Employee Benefits, Employment - Germany
“Equip for Equality Celebrates Its 25-Year History”
Chicago Daily Law Bulletin, November 17, 2010
Todd Solomon recalled a disagreement with a local school district about how to handle his son’s special education needs led him “to understand how huge the legal need is in that area.” Learning of Equip for Equality, a non-profit organization that advocates for the civil rights of the disabled, Mr. Solomon said he “personally took it upon myself to get involved and to make sure we got other [McDermott] attorneys involved” in donating services to the group. He called Equip for Equality’s 25th anniversary celebration “a very emotional night.”
Todd A. Solomon, Employee Benefits
“Barclays to Reimburse Gay Workers for Taxes on U.S. Benefits”
Bloomberg Businessweek, November 17, 2010
“Barclays to Pay for Extra Tax of Same-Sex Partners”
American Banker, November 15, 2010
Todd Solomon considered the positive employee relations impact of the Barclays plc decision to join other companies in reimbursing U.S. employees for additional federal taxes that they pay on health benefits for same-sex domestic partners. The Barclays decision is “simply to provide equal pay for equal work in this civil rights issue, there’s really no financial incentive,” Mr. Solomon said. “The bottom line is more than how much cash you spend today, it may help the bottom line to be seen as the employer of choice.”
Todd A. Solomon, Employee Benefits
“Barclays to Reimburse Gay Workers for Health Benefit Tax”
New York Times, November 12, 2010
Todd Solomon commented that the move by Barclays plc to pay the employee gross-up federal tax on same-sex domestic partner benefits “is sure to be a trend going forward, as covering this tax will undoubtedly be a competitive advantage for many large organizations.” He added that “the number of inquiries I have received about domestic partner tax gross-ups has significantly increased within the past six months.”
Todd A. Solomon, Employee Benefits
“IRS Announces 2011 COLA Limits for Qualified Plans; Most Unchanged”
Standard Federal Tax Reports, November 4, 2010
Todd Solomon stated that, because federal cost of living adjustments for retirement and benefit plans are unchanged for 2011, “Plan sponsors and record keepers will not have many adjustments to make to their procedures as, not surprisingly, the limits applicable to benefit plan contributions, benefits, compensation, and non-discrimination testing did not change.” He added that the unchanged 2011 Social Security wage base “means no changes for plans with benefit formulas that are integrated with Social Security.”
Todd A. Solomon, Employee Benefits
“Multi-Employer Pensions May Face Painful Disclosures”
Compliance Week, November 2, 2010
Jonathan Boyles noted that a proposed Financial Accounting Standards Board rule on more disclosure of companies’ obligations in multi-employer plans may be difficult to meet because a company likely has data only on its own obligations, not the entire plan. The overall impact is important because “there’s a lot of concern about what’s happening with these plans, the increased contributions and the withdrawal liabilities,” Mr. Boyles said. “If a substantial number of employers withdraw, you can have a mass liability.”
Jonathan J. Boyles, Employee Benefits, Executive Compensation
“Grossing Up Golden Parachute Payments”
M&A Tax Report, November 2010
Andrew Liazos and Daniel Senecoff, whose previous study had assessed issues related to the tax gross-up of “golden parachute” payments in merger and acquisition transactions, are said in this article to have “suggested interesting and important thoughts about some more sophisticated approaches” to making such arrangements work. For that reason, the article states, the study by Mr. Liazos and Mr. Senecoff “becomes all that much more required reading” for companies that would otherwise decry the use of gross-ups.
Andrew C. Liazos, Daniel Senecoff, Employee Benefits
"Decision of the Federal Court of Justice"
Newsletter Initiativbanking aktuell, November 2010
Volker Teigelkötter reviewed a decision of the Federal Court of Justice concerning the permissible agreement of employment regulations for the benefit of the company management and dismissal protection in this context.
Volker Teigelkötter, Employee Benefits
“New Rules for Preventive Care”
HR Magazine, November 1, 2010
Susan Nash explained that the health care reform act’s requirement that employers offer new preventive care services involves “some room for interpretation.” For example, she asked, must smoking cessation or obesity screening programs cover just counseling, or also treatment – “in other words, can you put parameters around it?” The lack of such parameters is troubling, Ms. Nash added, because the list of required services “is more extensive than what most plans already cover,” so “it’s not simply a matter of removing the co-pay or dollar limit on those benefits.”
Susan M. Nash, Employee Benefits, Health Care Law Reform
"Price, regulatory issues can lead to benefit headaches"
Boston Business Journal, October 15, 2010
Andrew Liazos spoke about steps employers should and should not take to reduce employee benefit costs. He warned, "If any consultant tells you that they'll manage your 401(k) fees for free and that they'll take their fees from the plan, that should be a red flag," adding that employers should ask any benefits consultant about which firms it partners with and about employee and client turnover. "What that gets to is stability," Mr. Liazos said. "[T]he loss of clients and loss of people working on cases leads to instability and that is something to give serious thought to. I don't think when selecting vendors you can overestimate the importance of understanding the relationships they have with their existing clients." Mr. Liazos also said employers should specifically document services and fees involved in using a consultant.
Andrew C. Liazos, Employee Benefits
"Big Changes Coming To Your Medical FSA"
Forbes, October 15, 2010
Susan Nash was quoted regarding a 1/1/2013 change in the rules for employers’ medical Flexible Spending Accounts, which will limit employee contributions to $2,500 a year. Currently there is no legal limit on contributions and many employers set limits at $5,000 or higher. “These accounts are just going to become a lot less useful to people than they were in the past” because of the rule change, Ms. Nash said.
Susan M. Nash, Employee Benefits
David Delgano spoke to eFinancialCareers (October 7) about the impact of the UK’s new Equality Act on pay transparency at financial institutions. Calling it “a slippery slope,” he warned that banks “will no longer be able to discipline people for talking about how much they’re paid, and once the pay gap is reported people will [be] asking why there’s such a big discrepancy between what men and women are getting.” He advised financial companies to be proactive in looking at why some people are paid more. “Is it because they’re threatening to leave? If so, and those threatening to leave are mostly men, this could become an issue,” Mr. Delgano stated.
David Dalgarno, Employee Benefits, Employment - London, Executive Compensation, Labor & Employment, London
“Should You Really Care About the Equality Act?”
EFinancialCareers.co.uk, 7 October 2010
David Dalgarno was quoted in an article regarding pay transparency. Mr. Dalgarno commented: "It's a slippery slope, banks will no longer be able to discipline people for talking about how much money they're paid and once the pay gap is reported people will still be asking why there's such a big discrepancy between what men and women are getting". He goes on to say "You need to be looking at why some people are paid more. Is it because they're threatening to leave? If so, and those threatening to leave are mostly men, this could become an issue".
David Dalgarno, Employee Benefits, Employment - London, Executive Compensation, London
“Preparing for HITECH and HIPAA Compliance”
Healthcare Informatics, October 2010
Amy Gordon, in an extensive online interview, assessed the HIPAA privacy implications of new HHS regulations implementing the HITECH Act. “The whole intent of HITECH in general, was really to say, who is responsible for what, and who has to do what, and to delineate the responsibilities and the liabilities with having … protected health information,” she explained. Ms. Gordon noted that “one of the things that HITECH did was that it raised the responsibility of a business associate almost to that of a covered entity, [b]ecause now, business associates are responsible for having their own policies and procedures [to protect health information]. They never had to do that before.”
Amy M. Gordon, Employee Benefits, Health Care Law Reform, HIPAA
“The Outie Awards”
The Advocate, October 2010
Todd Solomon was interviewed concerning Google’s recent decision to pay the additional higher federal tax assessed on domestic partner benefits for same-sex couples. “The climate is changing very quickly,” with more companies taking similar steps, Mr. Solomon said. “Google was the icing on the cake,” he continued, noting that he had received more calls about the issue in the past month than in the previous two years. “[W]ho knows what all this will do to the national – and corporate – consciousness,” Mr. Solomon added. “It [covering the higher tax] can be a competitive advantage if you’re in a large industry that depends on recruitment and retention. And Google, after all, has gotten a lot of good press.”
Todd A. Solomon, Employee Benefits
“Pro Bono: No Excuses Remaining”
Chicago Lawyer, October 1, 2010
Todd Solomon was singled out as a partner who has developed a national reputation in employee benefits practice while undertaking substantial pro bono work. Mr. Solomon received praise for spending hundreds of hours annually on pro bono employee benefits projects, serving as a “go-to” resource on pension issues for legal aid programs, representing disabled children in special education cases, performing legal assessments of nonprofits and chairing the Chicago office’s pro bono committee – all as “in-house cheerleader” in the Firm for pro bono.
Todd A. Solomon, Employee Benefits, Pro Bono & Community Service
“Health Care Reform: Grandfathered Health Plan Regulations”
Business & Legal Reports, September 23, 2010
Amy Gordon was featured in a review of the health care reform law's reinsurance program to reimburse employers with retiree health care coverage for part of large claims filed by early retirees. Employers must apply to participate, and, Ms. Gordon said, "The first step is to get your application approved. Once that's done, you can start submitting claims." She cautioned about program funding, saying "There are some very large employers out there with retiree medical programs; this money will run out." Ms. Gordon also discussed the law's subsidy to employers that keep retiree prescription drug coverage, but that subsidy runs out in 2013 and, she added, "Some employers cannot eliminate the coverage, depending on the promises they made to the employees/retirees and on the plan provisions." Click here to view the full article.
Amy M. Gordon, Employee Benefits
"Sarrazin" affair
Welt am Sonntag, September 5, 2010
Paul Melot de Beauregard comments on the "Sarrazin" affair, in particular regarding the difficulties in regulations on termination of employment.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
"Decision of the Federal Labour Court relating to company cars regulations"
Newsletter Initiativbanking aktuell, September 2010
Gudrun Germakowski commented a decision of the Federal Labour Court relating to company cars regulations. According to recent legal directives, economic condition is no longer a sufficient reason to refuse access to the company vehicle pool.
Gudrun Germakowski, Employee Benefits, Employment - Germany
Joseph Adams was quoted by CFO on August 31 about companies’ use of retention bonuses to keep chief financial officers from leaving for stated future periods. Such payments “have been around forever and I don’t think they’re viewed as overly excessive, particularly since they’re not a flow of cash out the door,” Mr. Adams said. He added, however that “the fact that someone has taken [a retention bonus] doesn’t mean they are staying. [It] may actually just increase someone else’s cost to buy out the executive.”
Joseph S. Adams, Employee Benefits, Executive Compensation
Jared Kaplan reviewed for Yahoo! Finance (August 23) the most important concepts that employees at companies that have an employee stock ownership plan (ESOP) should understand. These include: 1) Individual account value. "In a public company the value will fluctuate with the market value of the company," Mr. Kaplan said. "In a private company the value will be determined by an appraisal, which is performed at least once a year." 2) Retirement benefits. He noted that an employee will want to know "how and when the benefits under the plan will be paid to you or to your beneficiary." 3) Tax issues. Mr. Kaplan stated that, "If certain requirements are met, a substantial portion of your distribution from an ESOP may be taxed at long-term capital gains rates," which are substantially lower than most ordinary income tax rates.
Jared Kaplan, Employee Benefits
Nancy Gerrie was mentioned in an August 20P&C National Underwriters story about presenters at the Captive Insurance Companies Association (CICA) Fall Seminar in Washington, DC. Ms. Gerrie will speak on the typical Department of Labor decisions and processes that an employer needs to address when turning to captives for funding employee benefits.
Nancy S. Gerrie, Employee Benefits
Andrew Liazos was quoted by Pensions & Investments (August 9) regarding greater restrictions on and oversight of executive pay contained in the Dodd-Frank financial services reform law. Mr. Liazos said the law has given shareholders “new tools in trying to deal with executive compensation,” adding that because Congress “failed to deal with it” in recent years by restricting tax deductions on compensation, it now has “gone through a different way to solve the problem by giving shareholders a greater voice.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
“Legislation Could Limit Use of Swaps”
Employee Benefit News, August 1, 2010
Todd Solomon discussed the Dodd-Frank Act provision that swap dealers transacting with retirement plans have fiduciary duty to the plan. That term “raised alarm bells,” he said, “because if the swap dealer owes a fiduciary duty to the plan, and then is, of course, on its own side, it's basically on both sides of the swap transaction. And that's not a workable result.” Mr. Solomon noted that “if we remove the word ‘fiduciary’ perhaps there's less confusion that this isn't an ERISA issue,” but asked, “Even if it's not a fiduciary duty, but some kind of duty, how far does that duty extend to these transactions?”
Todd A. Solomon, Employee Benefits
"Changes in collective labour agreements"
Frankfurter Allgemeine Zeitung, July 21, 2010
Paul Melot de Beauregard comments the changes in collective labour agreements with regard to transfer of operations.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Todd Solomon commented for CCH Federal Tax Weekly on July 15 about a U.S. district court’s finding that Section 3 of the federal Defense of Marriage Act unconstitutionally denies legally married same-sex couples the right to file joint federal tax returns (and thus get a lower tax rate). Mr. Solomon stated that the ruling “may eventually be of landmark importance in the area of benefits for same-sex partners,” but cautioned that, because of anticipated appeals and government action, “it is likely going to be a while before this issue gets finally resolved.”
Todd A. Solomon, Employee Benefits
Todd Solomon was quoted by the San Francisco Chronicle (July 8) concerning the implications of Google’s decision to reimburse employees for the taxes paid on health care benefits for same-sex domestic partners, taxes that do not apply to married employees. He noted that other companies may consider such a step, but there are difficulties involved, particularly regarding the tax rate to be used. “It’s not snap your fingers and do it. There are a lot of things to think through,” Mr. Solomon noted.
Todd A. Solomon, Employee Benefits
Jonathan Boyles was interviewed in an Employee Benefits Advisor “Raw Bar” podcast on July 6 concerning a provision in the health reform law that will limit the ability of many health insurers to deduct compensation, including commissions, paid to employees and "individual service providers," starting in 2013. The law establishes a new $500,000 deduction limit for any employer that issues health insurance (including insurance companies and HMOs), and the deduction limit applies to all employees, officers and directors, as well any individual providing services for or on behalf of the health insurer or any related company in its controlled group, such as consultants and brokers. “Right now I think the most important thing will be to determine if the limitation will apply to the insurer and to get a sense of where your premium is coming from as an insurer, particularly in the case of stop-loss coverage” Mr. Boyles declared.
Jonathan J. Boyles, Employee Benefits
Todd Solomon spoke to the Society for Human Resource Management annual conference regarding best benefit practices for same-sex couples, a talk summarized July 2 on www.shrm.com. Mr. Solomon noted the difficulty posed by conflicting state and federal regulations regarding health care benefits for same-sex partners, saying, "To be perfectly frank, many employers don't get this right." He advised creating a grid to map the state and federal laws that might apply in a specific jurisdiction. "An employer's response also depends on whether the plans are self-insured or not," he added. "Insured plans are affected by state law benefit mandates and may have to recognize same-sex marriages, if that's the law in the state where the insurance was issued," even for employees that reside in states where same-sex marriages are not recognized. Click here for the full article.
Todd A. Solomon, Employee Benefits
Todd Solomon was quoted in The New York Times (June 30) and the International Herald Tribune (July 2) concerning Google’s new policy of covering the expense of an extra tax on health care benefits for same-sex domestic partner couples that heterosexual married couples do not pay. “It’s a fairly cutting-edge thing to do,” Mr. Solomon said of the company’s decision to make up for the extra tax payment.
Todd A. Solomon, Employee Benefits
"Expert advice on differences in salary"
Wirtschaftswoche, June 21, 2010
Interview with Paul Melot de Beauregard where he gives expert advice on differences in salary. The State Labour Court (Landesarbeitsgericht) decided that despite the confidentiality obligation with regard to earnings, employees are allowed to exchange information on wages.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany
"Decision of the German Federal Labour Court concerning the mutual trust between the chief and the employee"
Welt am Sonntag, June 13, 2010
Paul Melot de Beauregard comments on recent judgement of the German Federal Labour Court in which a decision is a need in order to be able to proof violated mutual trust.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany
"Rights of applicants in the case of a rejection"
Newsletter "Initiativbanking aktuell", July 2010
Volker Teigelkötter comments the information rights of applicants in the case of a rejection.
Volker Teigelkötter, Employee Benefits, Employment - Germany, Germany
"Flashmob events"
Personalführung, Issue 1, 2010
Gudrun Germakowski has been cited on flashmob events within the scope of labour disputes. Those new practices of industrial actions and protests can quickly reach their limits by a violation of law.
Gudrun Germakowski, Employee Benefits, Employment - Germany
Joanna Kerpen reviewed in Pension and Benefits Daily (May 20) the interim final regulations governing the health care reform law’s requirement that health benefit coverage be extended to adult dependents up to age 26. She noted that the regulations provide adult children with a special enrollment status, allowing them to enroll in a health plan in mid-year. Parents who are not currently covered by their employer’s plan also have access to the special enrollment status. Ms. Kerpen added that there may be state tax consequences to such enrollment, particularly under a tax code Section 125 plan to which an employee must make contributions.
Joanna C. Kerpen, Employee Benefits
Ralph DeJong assessed for Tax Analysts (May 17) a new Internal Revenue Service report on the quality of college and university tax oversight and reporting of executive compensation and benefits. He said that the positive findings of the report should give “significant comfort to the public” that these organizations are following good governance practices, noting that the absence of significant perks and deferred compensation indicates that “the sometimes painful lessons of recent years as to certain types of highly visible benefits certainly appear to have taken hold.” He added, however, that “there are still areas ripe for improvement,” such as the need for more uniform use of the rebuttable presumption process for settling executive compensation.
Ralph E. DeJong, Employee Benefits, Executive Compensation
"Age-dependent indemnity"
Newsletter Inititativbanking aktuell, May 2010
Volker Teigelkötter comments the question wether age-dependent indemnity is a form of discrimantion in the job. The German Federal Labour Court (BAG) does not see a refusal of a compensation payment as an immediate disadvantage.
Volker Teigelkötter, Employee Benefits, Employment - Germany, Germany
Susan Nash commented on April 15 for Best’s Insurance News about a new $5 billion fund in the health reform law to help employers provide health care benefits to early retirees who do not yet qualify for Medicare. Ms. Nash likened the fund to the “Cash for Clunkers” program, because “once the $5 billion is exhausted, it’s over.” She stated that it’s “kind of hard to believe” the fund will be up and running by its June 23 target date, and added that “there’s going to have to be a dialog between employers and insurance companies” on how to access money from the fund.
Susan M. Nash, Employee Benefits, Health and Welfare Benefit Plans
"Decision of the German Federal Labour Court concerning the political activity of the shop committee"
Frankfurter Allgemeine Zeitung, April 7, 2010
Commentary by Paul Melot de Beauregard on the right to work without influence on a personal political opinion. The working place should not be a political activity area.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany
Todd Solomon was quoted extensively in an April 6 Bay Area Reporter story about how same-sex couples can use Section 152 of the Internal Revenue Code to avoid higher taxes on health benefits for a domestic partner who can be classified as a dependent. "If you look at Section 152, there is more than one way to skin the cat here in order to be a dependent under the tax code," Mr. Solomon said. "For two partners, if one works and the other one doesn't work, they would be a tax code dependent." He added that "you can have a situation where somebody is dependent for health care purposes but not for general tax purposes.… There is no cap really to the 50 percent [level] of support. It is not really well-defined in the tax code what that support is other than it is living expenses," a situation that may apply when there is significant income disparity between two individuals.
Todd A. Solomon, Employee Benefits
Maureen O’Brien was quoted in a March 18 Law360 story about her move to the Firm’s Chicago office, where she will counsel clients on a broad range of employee benefits matters including plan design, funding and compliance issues. Ms. O’Brien called McDermott “a great firm with a global platform and a lot of great professionals. I thought it would be a great place for me. I really have a lot of respect for the practice here …”
Maureen O'Brien, Employee Benefits
David Cifrino and Andrew Liazos were interviewed by Corporate Board Member on March 12 concerning new Securities & Exchange Commission (SEC) proxy rules that require disclosure of public company compensation programs that create risks likely to have a material financial impact. Mr. Cifrino noted that “if a company doesn’t say that it has any such risks … the SEC has said it will ask the company to explain what process was used to make that determination,” and Mr. Liazos added that “a significant amount of time and money will need to be expended in many cases in order to be able to demonstrate that a company’s compensation programs do not encourage excessive risk taking.” Both lawyers said the new rules will have a major impact on compensation consultants and board compensation committees.
David A. Cifrino PC, Andrew C. Liazos, Corporate Responsibility and Governance, Employee Benefits, Executive Compensation
Todd Solomon was featured in a February 2010 story in the Chicago Bar Foundation’s Guardians of Justice newsletter concerning the pro bono support that a team of 10 McDermott lawyers is providing to the AIDS Legal Council of Chicago (ALCC). Mr. Solomon and his team joined with the Nonprofit Legal Assessment Program to assist the ALCC with a wide range of legal issues. Mr. Solomon described the program as “uniquely successful,” in that it gives the McDermott lawyers “in-area” pro bono experience with their practice areas. As a result of the program, McDermott attorneys now take on pro bono cases from ALCC, the Firm has increased financial sponsorship, and Mr. Solomon has joined the board of directors.
Todd A. Solomon, Employee Benefits, Pro Bono & Community Service
Todd Solomon was quoted in the January/February issue of Diversity & the Bar concerning the legal issues involving domestic partner benefits. “If there are any large employers who have not yet been asked about same-sex spousal benefits, they soon will be,” Mr. Solomon predicted. However, since private employers are not required to extend benefits to same-sex spouses under federal law, Mr. Solomon advised that employees need to approach domestic partner benefits as a human-resources or policy matter. “Employees need to appeal to the fair-mindedness of their employer,” he stated. “Legally, an employee’s only viable remedy is a lawsuit for sexual orientation discrimination, which isn’t actionable yet under federal law, but that could change; the Employment Non-Discrimination Act has been proposed for some time, and is better poised to pass in today’s political climate.”
Todd A. Solomon, Employee Benefits
Susan Nash commented for Tax Tricks for Kids on January 31 about a tax code feature that allows parents to divert up to $5,000 a year in pre-tax income into an account to pay for dependent child care. Ms. Nash said that some employers cut off funding below $5,000 because of an IRS rule designed to ensure that low-income as well as high-income employees use the accounts. “That tends to make highly paid people angry at year-end,” she said, because they find they cannot shelter the full $5,000 deduction.
Susan M. Nash, Employee Benefits
2009
Todd Solomon spoke on December 31 to CCH Federal Tax Weekly regarding Senate committee approval of a bill to provide domestic partner benefits to federal employees. Saying that if the bill became law it “would represent a dramatic sea change and would signal that the prevalence of domestic partner benefits in corporate America has spread to all levels of the public sector,” Mr. Solomon noted that, “contrary to the minimal domestic partner benefits provided to certain government employees earlier this year, this law would provide full benefits, including retirement and pension benefits, to the domestic partners of all employees.” He added that the federal Defense of Marriage Act would require the federal government to tax employees on the value of health benefits provided to domestic partners, just as private sector employers must do.
Todd A. Solomon, Employee Benefits
Andrew Liazos discussed issues relating to deferred executive compensation on December 15 for Forbes.com. “There's no question some executives are still deferring [pay], particularly when there is a long time horizon and their employer is stable,” Mr. Liazos said, “but many executives are deciding to take dollars now due to uncertain tax rates, economic conditions and personal cash flow.” One consideration is that the top tax rate on ordinary income may go from 35 percent today to at least 39.6 percent for 2011 as the Bush tax cuts expire. For that reason, Mr. Liazos advised executives that “if you have a large amount of dollars at stake and your time horizon is short, you're better off taking the taxable income in 2010, because otherwise you're looking at least a 5 percent haircut in terms of tax liability in 2011.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted on December 15 by CFO.com in an article about how the coming of the Bush tax cuts, and a likely higher tax rate as a result, could lead to a decrease in executives’ use of deferred compensation arrangements. "It's a bit of a twist,” Mr. Liazos said. “[P]eople usually try to defer compensation as long as possible, but now you see many evaluating how to accelerate it as much as possible because of the fear the tax situation will become much worse." He added that some companies are even planning to do away with their deferred compensation plans entirely, in part for tax reasons.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Gregory Heltzer and Ira Mirsky were mentioned by the Washington Post on December 14 for their promotion to partner in McDermott’s Washington, DC office. Mr. Heltzer practices in regulatory and government affairs, Mr. Mirsky in employee benefits.
Gregory E. Heltzer, Ira B. Mirsky, Employee Benefits, Regulation & Government Affairs - Germany
Joseph Adams commented on November 16 for BNA Tax Management Weekly Report regarding two documents that the Internal Revenue Service (IRS) has developed to help its agents examine nonqualified plans subject to Tax Code Section 409A, including guidelines to help develop information document requests (IDRs) for cases with potential Section 409A issues during the years 2006-2008. Likening the IDRs to “an information gathering process” to identify areas of noncompliance, Mr. Adams said the IRS is possibly following the same audit development initiatives used to gauge compliance with other Code sections, namely to identify issues and common violations and to train field agents. He added his hope that the IRS audits will focus on “big ticket issues” and not “esoteric issues that minds differ” over concerning interpretation.
Joseph S. Adams, Employee Benefits
Ira Mirsky was quoted by the Business Solutions Outsourcing Blog on November 11 concerning the forthcoming Internal Revenue Service detailed employment-tax examinations of some 6,000 companies beginning in February 2010. Mr. Mirsky urged any company to review their three most recent years of employment tax returns, as well as all supporting documents and records, in light of the criteria to be used in the audits. He added that “good IRS examination-management practices should be followed” by companies that are selected for an audit, including a clear chain of command for audit responses, use of outside advisers from the start of the process, and requesting additional response time when needed.
Ira B. Mirsky, Employee Benefits
Todd Solomon was quoted on November 5 by Standard Federal Tax Reports on the domestic partner provisions of The Affordable Health Care for America act expected to be passed by the House of Representatives. The bill would extend the current exclusion for employer-provided health coverage to domestic partners and other persons eligible for coverage under the employers plan, eliminating the current treatment of domestic partner benefits as taxable income. “In addition to providing welcome relief from a significant tax burden on employees and their domestic partners,” Mr. Solomon said, “this proposal would greatly reduce an employer’s administrative burden associated with running a domestic partner benefits program as well as an employer’s payroll taxes.”
Todd A. Solomon, Employee Benefits
Elizabeth Erickson and Ira Mirsky are co-authors of an article concerning tax rules for employment settlements that appeared October 29 on Employersweb.com. The authors note that, after settlement of an employee lawsuit against a company, “there is a major responsibility that inevitably involves personnel and compensation staff: administering the appropriate tax rules.” A settlement or award can be taxable income to the employee or former employee who made the claim, meaning that the company must issue appropriate tax documentation. The authors describe the complexity of the process for determining taxability, and offer suggestions on how companies can determine the correct tax treatment of employment-related settlement payments.
Elizabeth Erickson, Ira B. Mirsky, Employee Benefits, Trial
Ira Mirsky was quoted by Human Resource Executive Online on October 28 concerning a planned IRS National Research Program (NRP) to assess companies’ employment tax compliance. Mr. Mirsky advises companies to prepare by assessing their current payroll practices and their past three years of employment tax returns “with a specific focus on the fine areas identified by the NRP initiative, as well as any other known areas of weakness.” If a company is audited as part of the NRP, Mr. Mirsky suggests that “good IRS examination-management practices should be followed,” such as having a clear chain of command for responses to the IRS, using outside advisers early in the process, and asking for more time when needed to respond.
Ira B. Mirsky, Employee Benefits
Andrew Liazos spoke with Boardmember.com on October 7, warning that corporate board members need to prepare now for pending legislation in the House of Representatives that would give shareholders a vote on pay for top executives at all U.S. public companies. Mr. Liazos suggested that directors find out how management is preparing for this change by asking what the strategy is for handling shareholder communication and disclosure issues. Also, he added, board members should make sure their companies are aligning pay with performance, and jettisoning any poor pay practices that do not emphasize such an alignment. A key risk management consideration is that executives should be compensated for enhancing long-term shareholder value.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Todd Solomon was cited in an October 3 New York Times story on the long-term additional cost that gay couples face for health care and medical benefits. With regard to the tax implications of domestic partner benefit coverage, Mr. Solomon noted that a nondependent partner’s coverage is taxable income, and that pre-tax dollars cannot be used to pay the premiums for coverage.
Todd A. Solomon, Employee Benefits
Jonathan Boyles was quoted by Standard Federal Tax Reports on September 17 concerning new Internal Revenue Service procedures by which multiemployer plans that have critical financial problems can request automatic revocation of a Section 204 election to freeze funded status. IRS guidance formerly did not address whether plan sponsors could revisit their previous elections, and the new rules allow such an election to be revoked, but not revised. “The new guidance will allow plan sponsors additional time to consider their elections,” Mr. Boyles stated, “although the time for revoking the election is limited.”
Jonathan J. Boyles, Employee Benefits
Andrew Liazos was quoted by Dow Jones Newswires in a July 27 story about recent U.S. Tax Code changes that prohibit deferral of taxes on compensation paid to managers of offshore hedge funds. Mr. Liazos said the new rules will pose significant compensation issues, especially for funds based in tax havens. As he noted, when such funds and their managers use deferred compensation strategies, “They control when they pay the tax. That means there’s a huge amount of compensation that isn’t being taxed for periods of time.” He added that issues to be addressed in these instances include whether the fund is “tax indifferent” under IRS rules, and whether the specific compensation is subject to the Section 457A tax rule.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in Corporate Board Member on July 23 regarding impending legislation that would require public companies with annual meetings occurring on or after December 15, 2009 to give their shareholders a say on executive compensation. Mr. Liazos noted that directors should determine how management is preparing for this change. He stated that directors should, “Ask what the shareholder communication strategy is—who handles shareholder inquiries and the fair disclosure issues that may arise? Also, make sure your company is aligning pay with performance. If your company participates in poor pay practices, now is the time to jettison them….Finally, consider risk management. Are executives compensated for long-term shareholder value?”
Andrew C. Liazos, Employee Benefits, Executive Compensation
Amy Gordon spoke to CFO.com (July 14) regarding a little-known provision in the Emergency Economic Stabilization Act of 2008, which as of January 2010 will require many employers to change their health plans to ensure equality between physical and mental health benefits. Ms. Gordon noted that “there are many plans that cap mental health and substance abuse [treatment] visits,” and that many other plans “do not provide access to out-of-network providers, although they do on the medical and surgical side …” She added that many employers “are really concerned that there will be no limits on out-of-network visits, which can make it hard to keep a handle on costs. Noting that plan equality may lead more people to seek mental health care, Ms. Gordon concluded that “it’s hard to quantify the impact of the change because there are so many unknowns.”
Amy M. Gordon, Employee Benefits
Susan Nash was quoted in Business Week on July 16 concerning legislation proposed in Congress that would require employers to offer health insurance benefits to their employees or pay a fine. Ms. Nash suggested that companies may prefer to pay fines for part-time employees rather than incur the cost of insuring them. But, she said, “there is a hugely paternalistic culture among employers in this country when it comes to health benefits,” given that most companies with 50 or more employees offer them. Ironically, Ms. Nash added, companies with 25 or fewer employees would be exempt from fines, and “the bulk of the uninsured are in those small companies.”
Susan M. Nash, Employee Benefits
Jonathan Boyles was quoted by Standard Federal Tax Reports on June 25 concerning the new IRS Schedule M, which some pension recipients must file with their Forms 1040/1040A. The Schedule reflects new and optional withholding adjustment procedures for pension plans, and Mr. Boyles advised that “plan sponsors are not required to contact pensioners regarding the revised tables, although the IRS has encouraged plan sponsors to be proactive and contact pensioners … to ensure the[ir] withholding intent is properly effected. He added that “whether or not plan sponsors and their vendors implement the new tables, plan sponsors should be prepared to respond to participant inquiries.”
Jonathan J. Boyles, Employee Benefits
David Rogers was interviewed June 11 by Law360 concerning key employee benefits trends. “There is a constant stream of new regulatory guidance and, nearly every year or so, significant legislative changes” that impact benefits issues, he noted, citing new IRS changes to deferred compensation plans maintained by foreign corporations as a recent example. “We have advised our clients through the legislative process, and now the regulatory process, to assist them with these significant changes,” Mr. Rogers added. “While Treasury is quickly attempting to draft guidance in this area, the effective date of the legislation, as well as the various types of plans subject to the new rules, have made it challenging to provide advice.”
David E. Rogers, Employee Benefits, Health and Welfare Benefit Plans
Todd Solomon assessed in Echelon Magazine on June 6 the effect of the California Supreme Court decision upholding the Proposition 8 ban on gay marriage in California. The Court unanimously ruled that such marriages already performed were valid under California law, and Mr. Solomon wrote that, "In deciding so, the Court concluded that there was insufficient evidence that voters intended for Proposition 8 to have a retroactive effect." He also noted that, "Despite the significant loss of the right to marry, same-sex couples in California can still obtain the same legal rights and protections as spouses by entering into domestic partnerships. California enacted a domestic partnership law in 1999; this law remained in effect throughout the short-lived legalization of same-sex marriage." To view the entire article click here.
Todd A. Solomon, Employee Benefits
Todd Solomon discussed in Echelon Magazine (May 26) the California Supreme Court's upholding of the Proposition 8 ban on same-sex marriage. "Despite the loss of the right to marry, the impact for same-sex couples may not be that significant since California law still permits same-sex couples to register as domestic partners and receive all of the legal rights and protections of marriage but without the title," Mr. Solomon noted. He added that "the most significant impact" of the ruling "may be felt by couples who would have married in California and had their relationship recognized by one of the five states where same-sex marriage is legal."
Todd A. Solomon, Employee Benefits
Andrew Liazos was quoted in a Law360 story on May 20 regarding a Securities and Exchange Commission proposal to give shareholders the right to nominate their own corporate board candidates. Noting that similar proposals were twice made during the Bush Administration but did not get past Republican opposition, Mr. Liazos stated that “the difference now is you have a Democratic administration and you have three Democratic appointees and two Republican appointees.”
Andrew C. Liazos, Employee Benefits
Andrew Liazos was cited on May 12 in BNA Pensions & Benefits Daily as he spoke at an ABA Section on Taxation panel concerning IRS rules governing Section 457A that applies to compensation that is deferred under a nonqualified deferred compensation plan of a nonqualified entity. Mr. Liazos noted that Treasury Department interpretation is uncertain regarding a certain unusual "side pocket" arrangement in hedge funds. This is a single asset investment that Section 457A carves out and treats as an exception.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Jonathan Boyles commented for CCH Standard Federal Tax Reports (May 7) on the IRS extension of the deadline for employers to make elections on strengthening underfunded multiemployer defined benefit plans. Mr. Boyles said the extension will give plan fiduciaries "additional time to consider their options." In particular he cited "the option of entering 'yellow zone' endangered status or 'red zone' critical status and making an election to extend the funding improvements or rehabilitation plan by an additional three years."
Jonathan J. Boyles, Benefits Plan Compliance, Employee Benefits
Lisa Linsky was quoted in an April 24 story in Echelon Magazine about McDermott's successful pro bono effort, in conjunction with Lambda Legal, to reverse the Social Security Administration's denial of insurance benefits to the children of a disabled gay father who had fulfilled all prerequisites for the benefits. Noting that a number of McDermott Trial and Employee Benefits lawyers had participated in the effort as part of the Firm's commitment to pro bono and diversity, Ms. Linsky said that the Social Security Administration's reversal "validated fundamental principles of law and public policy," and that it "confirms the rights of all parents and children, regardless of the parents' sexual orientation." Other McDermott lawyers on the team included Amy Gordon, Elizabeth Philpott and Todd Solomon.
Amy M. Gordon, Lisa A. Linsky, Elizabeth P. Philpott, Todd A. Solomon, Employee Benefits, Pro Bono & Community Service, Trial
Andrew Liazos was quoted on March 2 in The National Law Journal regarding public corporations seeking guidance from lawyers regarding the restructuring of executive bonuses, salaries and employee stock-option plans. Mr. Liazos commented, "Companies now feel compelled to more thoroughly justify and explain their compensation structure in proxy statements, much as they felt obliged to explain their stock-options backdating problems, or lack of problems, in SEC filings when that was a hot issue." He continued by noting that companies are also, "coming around to the view that clawbacks are not unreasonable." Mr. Liazos said, "Clawbacks date back to the Sarbanes-Oxley Act of 2002, but those provisions only applied to the chief executive officer or chief financial officer if he or she engaged in misconduct related to a financial statement."
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in the February 2 edition of Law360 about how companies are starting to reflect on their compensation practices and prepare for increased public scrutiny. Mr. Liazos said public companies are also increasingly thinking about how compensation decisions will be perceived by their shareholders. "For companies that have had a difficult time, I think they're going to have to work hard to make the case that they have a real retention need, or that it makes sense to pay even though they didn't meet the pre-established performance goals," Mr. Liazos said.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Todd Solomon was quoted in the January 16 issue of CCH Tax Journal in an article about how the IRS has provided guidance with regard to allocating the new first-time homebuyer credit between unmarried co-purchasers of a principal residence pursuant to Code Sec. 36(b)(1)C). Mr. Solomon told CCH, "By offering a valuable tax credit to taxpayers who are not married, Notice 2009-12 provides an important federal tax benefit for unmarried domestic partners. As domestic partnerships are not recognized under federal law, a benefit of this sort is rare."
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans
Todd Solomon was quoted in the January 9 issue of CCH Tax Journal about the fact that the non-spouse beneficiary rollover provisions were made mandatory in technical corrections that were made to the Pension Protection Act. The Worker, Retiree and Employer Recovery Act also makes another very significant change related to plans and plan beneficiaries, Mr. Solomon told CCH. "The new law makes the nonspouse rollover provision mandatory," he said. "This is a key benefit and provides an important tax deferral opportunity for domestic partners as well as other nonspouse beneficiaries," Mr. Solomon explained. "Although many employers have been allowing nonspouse beneficiary rollovers beginning in 2007, many had not focused on this change given all of the other plan administration changes that resulted from the Pension Protection Act," he concluded.
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans
2008
Todd Solomon was quoted in the December 15 issue of CCH Weekly Report on how Congress approved a pension technical corrections bill on December 11 that will provide tax relief to seniors who are required to take distributions from their retirement plans. "While the relief on the plan document requirement is welcome, many 403(b) plan sponsors have already adopted plan documents in anticipation of the new requirement," Mr. Solomon said. "That said, the idea that the IRS will be expanding relief for correcting 403(b) plan failures using the EPCRS correction program and the fact that the IRS will be issuing guidance on a pre-approved 'prototype' plan for 403(b) plans are really good pieces of news for tax-exempt organizations," he added.
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans, Tax Exempt Bonds
Andrew Liazos was quoted on October 22 in Law360 regarding Wall Street's volatility. Mr. Liazos noted that the credit crunch may force companies with liquidity problems to consider alternative compensation strategies. "We are already seeing cash-strapped companies evaluate how to shift from cash compensation to equity based compensation," Mr. Liazos said. "When there's a need to retain key performers and cash is scare, equity may become a particularly attractive retention tool."
Andrew C. Liazos, Employee Benefits, Markets Restructuring
Volker Teigelkötter was quoted in the October 14 issue of Wirtschaftswoche as a legal expert in the area of competition clauses.
Volker Teigelkötter, Employee Benefits
Todd Solomon was quoted in the August 21 issue of CCH Standard Federal Tax Reports on the IRS's recent revisions to its comprehensive system of correction programs, EPCRS, for sponsors of retirement plans. "The new revenue procedure is more of a fine tune of the program than a major overhaul but there are some items included that will be helpful for plan sponsors," Mr. Solomon said.
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans
David Rogers was quoted in the August 7 issue of Highlights & Documents about the IRS's ruling against pension plan transfers. The IRS determined that the transfer of a defined benefit pension plan to an entity unrelated to the participants' employer is a violation of the section 401(a) exclusive benefit rule. Mr. Rogers commented that the ruling "pretty much quashes the approach …that people have been contemplating."
David E. Rogers, Employee Benefits, Health and Welfare Benefit Plans
Todd Solomon was quoted in the July issue of HealthLeaders InterStudy California Health Plan Analysis on how health insurers haven't seen much effect from gay marriage. "If the health plan is not real clear about how it defines spouse and which spouses it intended to cover, it may very well cover that spouse," Mr. Solomon said. "Whereas, if it were domestic partner, I think it would be much clearer; either the plan covers domestic partners, or it doesn't. So I think the burden is on employers to define what they mean by spouse now," he added.
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans
Todd Solomon was mentioned in the June 27 issue of the New York Law Journal in an article regarding a suit against the federal government on behalf of Gary Day, a disabled gay father whose requests for financial assistance for his two children have been repeatedly ignored. Mr. Solomon was part of the McDermott team that teamed with Lambda Legal to represent Mr. Day in the case.
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans
Todd Solomon was mentioned in the June 25 issue of the Windy City Times in an article regarding the recent Citywide Pride event hosted by Merrill Lynch and McDermott Will & Emery. The article discusses Mr. Solomon's presentation and his helpful hints for employers about domestic partner benefits. Mr. Solomon is also looking forward to possibly having civil unions in Illinois. Although it won't have an impact on federal benefits, it will clue more local companies into the needs of their LGBT employees. "It will do a lot for bringing this higher up on the radar screen for Illinois companies," Mr. Solomon said. "It will continue to bring attention to the issue."
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans
Amy Gordon was quoted in the April 21 issue of Business Insurance in an article about how companies that have been using financial incentives or other inducements as part of their wellness programs must reconsider those incentives in light of recent federal guidelines clarifying what constitutes health-related discrimination in employee benefit plans. "Just satisfying HIPAA is not enough. There are a lot of other legal responsibilities,'' said Ms. Gordon.
Amy M. Gordon, Employee Benefits, Health and Welfare Benefit Plans, HIPAA
Todd Solomon was quoted in the March 20 issue of CCH Journal about how qualified plans would be required to allow rollovers by non-spouse beneficiaries under House-passed technical corrections to the Pension Protection Act of 2006 (PPA). "Before the PPA, participants could make hardship distributions for qualified expenses only for themselves or their spouse or dependents. Under the PPA, if your domestic partner is your beneficiary, you can make a hardship withdrawal, if the benefit plan allows," Mr. Solomon said.
Todd A. Solomon, Employee Benefits, Health and Welfare Benefit Plans
Joe Adams was quoted in the February 2008 issue of CFO Magazine about how companies can help retiring employees transition from savers to consumers. Despite the improvements, annuities aren't without both downside and risk. Risks include the possibility of inflation topping 4 or 5 percent or, said Mr. Adams, "if the provider goes under."
Joseph S. Adams, Employee Benefits
Chip Kerby was quoted in the February 2008 issue of CFO Magazine about how now, progressive employers are thinking more broadly about how they manage health care, and searching for savings at the individual level. There is also a fiduciary risk associated with HRAs that should not be overlooked, said Mr. Kerby, especially since such accounts are not covered by ERISA.
, Employee Benefits, Employee Benefits Litigation, Health
Andrew Liazos was quoted in the February 25 issue of Financial Week about how a tax ruling by the IRS could bring an end to the controversial practice of granting golden parachutes to top executives who are pushed out amid corporate failures. "The bad news is that they didn't listen to our arguments about the ruling being misguided," said Mr. Liazos. "The good news is that the position will be applied prospectively, meaning companies will have time to modify their plans."
Andrew C. Liazos, Employee Benefits
Chip Kerby was quoted January 2 on Kaisernetwork.org about VEBA health trusts. "It's not like it's a new thing," said Mr. Kerby. "It's a thing that's being utilized now because the parties that are facing each other across the table in these situations of economic distress have decided that it is maybe the last, best shot for preserving some of the benefits that the union retirees have been expecting," he added.
Phyllis Kupferstein was quoted in the January 2008 issue of Workforce Management Online in an article regarding health issues in the hiring process. "Recruiters should be wary of any situation where a candidate provides health information in case there is a later charge that the information colored the offer decision," Ms. Kupferstein said. She notes that when faced with coverage questions without full information during the hiring process, "Recruiters should be very general in any discussion of the health plan and defer any questions to the post-offer phase."
, Employee Benefits, Health Care Litigation, HR & Employment Litigation
2007
Chip Kerby was quoted December 23 on Detroit Free Press about VEBA health trusts. "It's not like it's a new thing," said Mr. Kerby. "It's a thing that's being utilized now because the parties that are facing each other across the table in these situations of economic distress have decided that it is maybe the last, best shot for preserving some of the benefits that the union retirees have been expecting," he added.
Paul Melot de Beauregard was quoted in the Number 4 issue of Initiativbanking regarding employee involvement as part of annual salary.
Paul Melot de Beauregard, Employee Benefits, Germany, Labor & Employment
Ralph DeJong was quoted on September 10 on CFO.com regarding an IRS rule issued in late July that restores the existing tax code, forcing employers to take greater responsibility for developing and overseeing 403(b) plans into line with rules governing 401(k)s, which are offered by non-profits as well as many profit-making companies. Mr. DeJong contends that the need for change was likely induced by, "a vacuum of responsibility." He states that, "Historically, tax-exempt organizations that sponsored or made available 403(b) tax-sheltered annuities took a hands-off approach." Citing that compliance failures are the main reasons the IRS pushed through the new rule, Mr. DeJong states that the most noticeable change to the tax rules is that employers will have to develop a plan document that identifies how the vendor and the employer with work together to administer the 403(b) plan.
Ralph E. DeJong, Employee Benefits, Health
Andrew Liazos was quoted on September 10 in Financial Week regarding the Internal Revenue Service rules governing deferred compensation. Tax lawyers have been pressuring the IRS and the Treasury Department to extend the year-end deadline from bringing documents into compliance with the rules. The IRS extended until December 2008, but the extension applies only to the documenting of compliance under 409A, not to the effective date of the new regulations, which begin January 1, 2008. "The rules of the road are still going to change at the end of this year, and this relief only has to do with documenting compliance," commented Mr. Liazos. "People might get put to sleep on this extension, and that would be a big mistake," he said.
Andrew C. Liazos, Employee Benefits
Phyllis Kupferstein was quoted in the August 2007 issue of Diversity & the Bar in an article regarding the impact that the ERA has on the workplace today, with a focus on women's equality. "While an affirmative statement of women's equality will affect women's confidence and morale, I don't see it having much of a practical effect on the private workplace. Many protections in the law already exist," said Ms. Kupferstein. A Women's Equality Amendment would, though, "guard against women losing the statutory rights they have fought so hard to attain," she added.
, Employee Benefits, HR & Employment Litigation
Paul Melot de Beauregard was interviewed August 6 live on NRW.TV regarding the strike of the engine drivers in Germany.
Paul Melot de Beauregard, Employee Benefits, Germany, Labor & Employment
Uwe Goetker, Norbert Schulte, Rick Mitchell, Dirk Pohl and Volker Teigelkotter were mentioned in the July 11 issue of Börsenzeitung regarding the representation of Dr. Alfred Schefenacker, owner of the Schefenacker Group, in connection with the Group's comprehensive financial and operational restructuring.
Uwe Goetker, Richard Mitchell, Dirk Pohl, Norbert Schulte, Volker Teigelkötter, Corporate, Employee Benefits, Germany, London, Tax
Paul Melot de Beauregard was quoted in the July 11 issue of the Frankfurter Allgemeine Zeitung regarding the enjoining of a strike.
Paul Melot de Beauregard, Employee Benefits, Germany, Labor & Employment
Gudrun Germakowski was quoted in the July 9 issue of Wirtschaftswoche regarding the ongoing use of a company car after a dismissal.
Gudrun Germakowski, Employee Benefits, Germany, Labor & Employment
Todd Solomon was quoted in the July 1 edition of Employee Benefits News about how same-sex couples must navigate the tax nuances of domestic partners benefits. Mr. Solomon believes there are two reasons domestic partnership enrollment remains low at companies. "People are fearful of coming out in their workplace, and it's not a tax efficient way to cover your partner," he said.
Todd A. Solomon, Employee Benefits
M. Miller Baker, David E. Rogers, Michael S. Nadel, Jeffrey W. Mikoni and Michael T. Graham were mentioned in the June 13 issue of Mealey's ERISA Report for representing Crown Vantage’s bankruptcy trustee in Jeffrey H. Beck v. PACE International Union.
M. Miller Baker, Michael T. Graham, Jeffrey W. Mikoni, Michael S. Nadel, David E. Rogers, Employee Benefits, Trial
M. Miller Baker was quoted in a June 11 article published by Financial Week regarding the Supreme Court's decision to overrule an ERISA claim filed against trustees of bankrupt paper company Crown Vantage. Mr. Baker served as lead counsel for Crown's trustee and saluted the decision, which reversed three lower court rulings. "The decision prevents the union from raiding the company's pension plan," Mr. Baker said.
M. Miller Baker, Employee Benefits, Trial
Nancy Gerrie was quoted in the May 28 issue of Business Insurance about how the IRS regulations that define the normal retirement age for a pension plan will force hundreds of employers that use a younger age to prove it is reasonable. “This is going to require some analysis and extra work,” said Ms. Gerrie.
Nancy S. Gerrie, Employee Benefits
Renata Ferrari was mentioned in the May 14 edition of the Massachusetts Lawyers Weekly about recently joining McDermott’s Employee Benefits Department in Boston.
Chip Kerby was quoted in the May 7 issue of the Boston Business Journal about how portions of the state's new law to expand health insurance coverage may clash with federal statutes and appear vulnerable to legal challenges. "These are features vulnerable to attack," Mr. Kerby said.
, Consumer-Driven Health Care, Employee Benefits, Health and Welfare Benefit Plans
Susan Nash was mentioned in Business Wire on May 4 in regards to speaking at the HSA 2007, a national conference in Chicago, a forum for employers looking to save money on health care.
Susan M. Nash, Consumer-Driven Health Care, Employee Benefits, Health and Welfare Benefit Plans
Bill Merten was quoted in the May 2007 issue of Corporate Secretary about the benefits and significant costs for going private. "The use of an ESOP in a going private transaction allows the company to share ownership with its employees on a tax-advantaged basis," said Mr. Merten.
William W. Merten, Employee Benefits, ESOPs, Non-Qualified Deferred Compensation
Todd Solomon’s book, Domestic Partner Benefits: An Employer’s Guide, was mentioned in the May/June issue of Diversity & The Bar for being a widely used book on the subject.
Todd A. Solomon, Employee Benefits
Paul Melot de Beauregard had been interviewed in the 23 April issue of Wirtschaftswoche regarding the antidiscrimination law and its impact for executives.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Chip Kerby was quoted in the April 23 issue of Boston Business Journal in an article about how the new law to expand health insurance coverage is confusing to businesses. "As I continue to plum the depths of the law I continue to find disconnects -- things that don't make fundamental sense," said Mr. Kerby.
, Employee Benefits, Employee Benefits - Insurance, Insurance
David Rogers was mentioned in the April 18 issue of the Daily Deal about becoming co-partner-in –charge of McDermott's Washington, D.C. office.
David E. Rogers, Employee Benefits
Alison Wetherfield was quoted in the April 17 issue of PersonnelToday in an article on a teachers’ union threatening legal action over the growing trend of "cyber-bullying. The new law would help teachers to require their employers to take this sort of behaviour seriously," Ms. Wetherfield said.
Alison Wetherfield, Employee Benefits, Employment - London, London
McDermott Will & Emery was mentioned by CFO.com on April 10 and The Deal on April 16 in regards to its role in Sam Zell's buy-out of the Tribune Co. McDermott advised the Tribune Co. on the ESOP matters of the transaction.
Paul J. Compernolle, William W. Merten, Employee Benefits, ESOPs
Nancy Gerrie was quoted in the April 2 issue of Business Insurance in an article detailing Fidelity Investments' decision to add health savings accounts to its retiree savings program. "It is applying a defined contribution approach to retiree medical benefits. It is a way of controlling your costs and knowing what to expect in terms of expense," Ms. Gerrie said.
Nancy S. Gerrie, Employee Benefits, Employee Benefits - Insurance, Insurance
Ralph DeJong was quoted in the February 26 issue of BNA, Inc. Daily Tax Report in an article regarding the IRS's 2006 Form 990. "What it leaves open is the very cumbersome and intrusive process of determining from directors and independent contractors who they may be related to, what business interests they may have outside the organizations they serve on, when they or their family members may be related through trusts, partnerships, or business corporations, and the extent of those relationships," Mr. DeJong said.
Ralph E. DeJong, Employee Benefits, Tax
Nancy G. Ross was quoted in the February 5 issue of Business Insurance in an article on recent rulings by the 3rd and 7th Circuit Courts of Appeals that cash balance plans do not discriminate against older workers. Legal experts believe that other appeals courts will follow suit. Said Ms. Ross, "These appear to be airtight decisions, and those are the ones that will prevail at the end of the day."
Nancy G. Ross, Employee Benefits, Employee Benefits - Insurance, Employee Benefits Litigation, Insurance
Christian von Sydow, David Cifrino and Paul Melot de Beauregard were mentioned in the February issue of Juve Rechtsmarkt regarding Nova Analytics in the acquisition of Ebro Electronic Instruments.
Paul Melot de Beauregard, David A. Cifrino PC, Christian von Sydow, Corporate, Employee Benefits, Intellectual Property
Volker Teigelkötter was quoted several times in the February issue of Capital in an article about legal issues regarding bonus for managers as part of their salary.
Volker Teigelkötter, Employee Benefits, Employment - Germany, Germany
Nancy G. Ross was quoted in the January 22 issue of Business Insurance in an article regarding the U.S. Supreme Court's recent denial of review of a federal appeals court decision concerning the alleged discriminatory practice of cash balance pension plans. Ms. Ross commented that despite strong lobbying initiatives, Congress did not make the plans retroactive. "There was a strong lobbying effort to make the cash balance provisions retroactive and Congress didn't do it," she said.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
2006
Richard V. Smith was quoted in the December 29 issue of PlanSponsor on the new SEC requirements for annual disclosure of executive compensation. "Twenty years ago, executive compensation increases were primarily cash but, today, because of 162(m), it is primarily incentive," Mr. Smith said. "Incentive-based compensation has driven executive pay increases," he added.
Chip Kerby was quoted In the December 22 issue of Inside Consumer-Directed Care about Congress passing the long-sought-after HSA fixes. "Christmas came early for the HAS supporters," Mr. Kerby said.
, Consumer-Driven Health Care, Employee Benefits, Health
Chip Kerby was quoted In the December 22 issue of Inside Consumer-Directed Care about the new HAS law setting the maximum annual contribution at the statutory limit. "Cutting the ties between the deductible and the maximum HSA contribution is critical to the growth of the account-based plans," Mr. Kerby said. "Essentially, you no longer have to burn through your entire HSA balance to cover the deductible," he added.
, Consumer-Driven Health Care, Employee Benefits, Health
Richard V. Smith was quoted in the December 22 edition of the Chicago Tribune about IBM's decision to stop granting stock options to outside directors. IBM follows companies such as Campbell Soup Co. in ending director stock options after more than 190 companies disclosed reviews into backdating of options grants. "IBM is ahead of the curve," Mr. Smith said of the decision. "We'll probably see more companies do this in the next two to three years." This article also appeared in the Financial Post and the Philadelphia Inquirer.
Richard V. Smith was quoted in the December 18 issue of Business Week in an article about how new SEC rules require companies to disclose top executives' total compensation. Mr. Smith "has been telling clients to make changes to pay plans now to deal with any possible future excess compensation issues."
Nancy Ross was quoted by Business Insurance on December 13 regarding cash balance pension plans discriminating against older employees. The split in the courts shows that it will be some time before the age discrimination issue will be resolved commented Ms. Ross.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
Michael Graham was quoted in the December 4 issue of Business Insurance about a recent ERISA ruling that highlights the need to update plan documents. Predicting what cases the Supreme Court will agree to review is difficult, but "I think a time is coming soon when they will take a case" on when courts should defer to benefit plan decisions, Mr. Graham said.
Michael T. Graham, Employee Benefits, Employee Benefits Litigation
Richard V. Smith was quoted by Bloomberg on November 15 in an article about pay consultants facing potential liability when a new Securities and Exchange Commission rule goes into effect next year. The rule will require companies to name their pay consultants in public reports. "If you want to stay in the business, you're going to have to put on some body armor," Mr. Smith said. The article also appeared in the Houston Chronicle.
Nancy G. Ross was quoted in the November 6 issue of Business Insurance in an article regarding a recent federal court finding that cash balance pension plans discriminate against older workers. Mr. Ross commented that such discrimination issues are not likely to be settled in the near future. "We don't have closure. Two different judges can have two very different views," she said.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
Nancy Ross was quoted in the October 30 issue of Business Insurance regarding a 7th U.S. Circuit Court of Appeals decision ruling that IBM Corp.'s cash balance plan was age discriminatory. "We won't have certainty until the other appeals courts rule. We need to ride the wave longer to have greater comfort," commented Ms. Ross.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
Chip Kerby was quoted in October 27 issue of Inside Consumer-Directed Care on the ability of domestic partners to contribute twice as much as married couples to a health spending account (HSA) when enrolled in a high-deductible health plan. "It's kind of a glitch," Mr. Kerby said. “If an employee and a domestic partner are both covered and eligible to make HSA contributions, they can each make contributions up to the maximum HSA contribution limits," he said.
Todd Solomon was quoted in the October 19 issue of the Stevens Point Journal (Wisconsin) about his speech given at the University of Wisconsin Stevens Point forum on the legal aspect of the proposed amendment to the Wisconsin constitution banning same-sex marriage. "This isn't necessarily a same-sex issue here; opposite-sex couple can be affected, too," he said.
Todd A. Solomon, Employee Benefits
Paul Melot de Beauregard was interviewed in the October 16 issue of Wirtschaftswoche regarding the impact of the new German Equal Treatment Act.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Todd Solomon was mentioned in the October 10 issue of US States News for being a speaker on a forum on the proposed constitutional amendment on marriage and civil unions that was on the Wisconsin ballot. The forum was held at the University of Wisconsin-Stevens Point.
Todd A. Solomon, Employee Benefits
Diane Morgenthaler was featured in the October 2006 issue of What to Do About Personnel Problems in an article about making ERISA work for you. The article discusses Ms. Morgenthaler's presentation at the 7th Annual Illinois HR Conference and Exposition in August. "ERISA is actually an employer's dream," Ms. Morgenthaler said. She explains that if an employer’s benefit plan adheres to simple standards set out in the law itself, and in subsequent court decisions, a plan can become practically litigation proof.
Diane M. Morgenthaler, Employee Benefits, Employee Benefits Litigation
Andew Liazos was quoted in the September 12 issue of The National Law Journal, about a sweeping tax code 409A—regulating many deferred-compensation plans favored by private companies, including stock options. Both tax and corporate attorneys feel that the new law is strewn with pitfalls and complexities that hinder corporate deal making and expose executives to penalties. He commented on the problems that this code has had on buyer and how it could have been avoided if Congress would have given "the regulators an opportunity go update the regulations as opposed to having Congress come in and change the rules of the game completely."
Andrew C. Liazos, Corporate, Employee Benefits, Executive Compensation
Paul Melot de Beauregard was quoted in the June 19 issue of Wirtschaftswoche regarding the legal background of company secrets.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Chip Kerby was quoted in the August 11 issue of Inside Consumer-Directed Care in an article about the final HSA comparability guidance issued by the Treasury Department that went into eddect July 31. "Alot of employers use outside advisors to ensure that they're compliant with the rules. And there weren't many advisors that were very comfortable with the proposed [comparability] rules," he said. "Prior to this guidance, we scratched our heads when the [IRS] said 'through a cafeteria plan.' But now it's very clear," he added.
, Consumer-Driven Health Care, Employee Benefits, Health
Diane Morgenthaler was quoted by CNNMoney.com and Dow Jones on August 7 regarding the federal appeals court ruling that IBM's cash-balance pension plan does not discriminate against older workers. Diane predicted that more companies will convert their traditional pensions to cash- balance plans. "Employees think it's a better benefit because it's portable," she said of the cash-balance plans. "Employers like it better because it's easier to explain."
Diane M. Morgenthaler, Employee Benefits
Richard Smith was quoted by Bloomberg News on August 3 regarding backdated options. Mr. Smith commented that containing the scandal may not be easy, especially if prosecutors focus on cases where top corporate officials used backdated options to boost their salaries by millions of dollars.
Nancy Ross was quoted in the July 24 issue of Business Insurance in an article regarding a federal appellate court's ruling that a retired employee cannot challenge the elimination of retiree health benefits. Ms. Ross commented on the court's analysis in reaching its conclusion that the retiree had not pled enough facts to prove reliance on the alleged representations, noting in particular the surprising result by a court typically considered to be more protective of employees in benefits matters.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
Paul Melot de Beauregard was quoted in the June 29 issue of Handelsblatt.com regarding the legal background of company secrets.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Susan Nash was quoted in the June 28 issue of Forbes.com in an article about the U.S. Internal Revenue Service proposing comprehensive, long-delayed rules for claiming dependent care tax breaks that will mean more savings for some working parents and less for others. "Employers are going to want to communicate the changes to employees, and employees need to pay attention so they put the right amount of money aside," warned Ms. Nash.
Susan M. Nash, Employee Benefits, Tax
David Dalgarno was quoted in the June 20 issue of Personnel Today regarding the tribunal case in which a senior manager was held personally liable for harassment. "Companies should ensure that managers have had up-to-date equal opportunities training. Such training should raise awareness of the potential for personal exposure," he said.
David Dalgarno, Employee Benefits, Employment - London, London
Paul Melot de Beauregard was quoted in the May 27 issue of Frankfurter Allgemeine Zeitung regarding wage agreements.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Ralph DeJong was quoted by Modernhealthcare.com on May 25 regarding not-for-profits' executive compensation. "The IRS' soft audits focused on poorly reported facets of not-for-profits' executive compensation, particularly perks and deferred compensation that are expected to accrue value," Mr. DeJong says.
Ralph E. DeJong, Employee Benefits, Executive Compensation
John Hendrickson was quoted in the May 2006 edition of Employee Benefits News in an article about how if employers were more mindful of the quagmires of legal snares and entanglements, they would be better equipped to take preventative measures and evasive maneuvers. "The law is extremely complex. It's easy for even a well-intentioned employer to get in trouble," said Mr. Hendrickson. "You miss a report, commit a technical violation, use the wrong definition—there are all kinds of ways to slip up," he added.
John P. Hendrickson PC, Employee Benefits
Ryoko Mochizuki was quoted in the May 1 issue of Kigyo Gaikyo News in an article regarding strategic localization.
John Hendrickson was quoted in the May 2006 issue of Employee Benefits News in an article about how if employers were more mindful of the quagmires of legal snares and entanglements, they would be better equipped to take preventative measures and evasive maneuvers. "The law is extremely complex. It's easy for even a well-intentioned employer to get in trouble," said Mr. Hendrickson. "You miss a report, commit a technical violation, use the wrong definition—there are all kinds of ways to slip up," he added.
John P. Hendrickson PC, Employee Benefits
Joe Adams was quoted in the April 2006 issue of FA Magazine about how the two varieties of restricted securities are flowering, aiding executives, business owners–and now investors. The latest twist in the genre is restricted stock units. They are rights to own the employer's stock (tracked as bookkeeping entries) rather than actual stock. A primary difference: The Section 83(b) election is not available for RSUs, said Mr. Adams.
Joseph S. Adams, Employee Benefits
Paul Melot de Beauregard was quoted in the 29 March issue of Frankfurter Allgemeine Zeitung regarding the important decision of the Federal Labour Court about Christliche Gewerkschaft Metall (CMG) being recognised as a union.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany, Labor & Employment
Paul Melot de Beauregard was interviewed in the first issue 2006 of HR Services concerning the tightened outsourcing laws.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Diane Morgenthaler was quoted in the February 17 edition of The CQ Researcher in an article about how many private pension plans will not be able to pay the benefits they have promised, requiring more of the responsibility of saving for retirement to fall to the individuals. "We've begun a trend [in which] employees will have to take more and more responsibility for their own retirements," Ms. Morgenthaler said. "While there will be employer benefits, we'll see more and more individuals funding their own retirements," she added.
Diane M. Morgenthaler, Employee Benefits
Andrew Liazos was quoted in the February 14 issue of Forbes magazine in an article about the U.S. Securities and Exchange Commission's pay disclosure proposals. Attorneys say more rules provide more opportunities for companies to mess up, and more information means more ammunition for lawsuits. "There's going to be so much information to go after. I suspect there will be a fair amount of activity," Mr. Liazos said.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted on Forbes.com on February 14 regarding the SEC's pay disclosure proposals. Mr. Liazos commented that more being information provided could mean more ammunition for lawsuits.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Paul Melot de Beauregard was mentioned in the January 2006 issue of Juve Rechtsmarkt as a new lawyer at McDermott.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
2005
Paul Melot de Beauregard was quoted in the December 20 and 21 issue of Handelsblatt on the European court's new practice regarding employee rights in outsourcing.
Paul Melot de Beauregard, Employee Benefits, Employment - Germany, Germany
Volker Teigelkötter was quoted in the December 15 issue of Handelsblatt regarding changing tax law for compensations.
Volker Teigelkötter, Employee Benefits, Employment - Germany, Germany, Tax, Tax - Germany
Volker Teigelkötter was quoted in the December 8 issue of Wirtschaftswoche regarding changing tax law for compensations.
Volker Teigelkötter, Employee Benefits, Employment - Germany, Executive Compensation, Germany, Tax, Tax - Germany
Todd Solomon was quoted in the November/December issue of Diversity & the Bar in an article about how domestic partner benefits for same-sex couples are becoming more commonplace in law firms. "The number of employees who take advantage of the benefits typically is one to three percent of a company's population, Mr. Solomon said. "But many employees who would never enroll a domestic partner in the plan may feel strongly about the availability of domestic partner benefits as a fairness issue," he explained.
Todd A. Solomon, Employee Benefits
Nancy Gerrie was quoted in the November 7 issue of Lawyers Weekly USA in an article about the best piece of professional or personal advice lawyers attending a recent seminar held by the National Association of Women Lawyers seminar in Chicago ever received. "The best piece of advice I ever got was from my 94-year-old grandmother, who told me, 'Life is a marathon, not a sprint.' When I was a young lawyer, I was so eager to achieve, I tended to over-commit. The reality is when you get older you realize it's probably better to be a little bit more thoughtful about what you're going to do in terms of quality versus quantity," Ms. Gerrie said.
Nancy S. Gerrie, Employee Benefits
Joseph Adams was quoted on October 5 on Forbes.com on the proposed regulations released by the U.S. Treasury Department giving companies an additional year to comply with a new law restricting many types of nonqualified deferred compensation arrangements for top executives. Mr. Adams noted that notwithstanding the one year extension, certain executives may still wish to take action before the end of 2005.
Joseph S. Adams, Employee Benefits, Executive Compensation, Labor & Employment, Non-Qualified Deferred Compensation
Joseph Adams was quoted by Bloomberg on September 29 regarding new proposed regulations released by the U.S. Treasury Department giving companies an additional year to comply with a new law restricting many types of nonqualified deferred compensation arrangements for top executives.
Joseph S. Adams, Employee Benefits, Executive Compensation
Chip Kerby was quoted in the September 9 edition of Inside Consumer-Directed Care in an article about how Aetna and CIGNA Healthcare are improving price transparency with new services. New HSA regulations proposed by the Treasury Department could make it difficult for employers to reward employees who participate in wellness programs. The proposal also would prevent employers from making larger HSA contributions to lower-paid employees unless the HSAs are offered through a cafeteria plan. "There shouldn't be anything wrong with making a larger [HSA] contribution to rank-and-file employees, or to different bargaining units," said Mr. Kerby. He also noted, however, that the problem is more with the comparability rule itself than it is with the Treasury Dept.'s latest interpretation. This rule, Mr. Kerby explained, was developed for Archer medical savings accounts, which were available only to small employers and the self employed.
, Consumer-Driven Health Care, Employee Benefits, Health
Chip Kerby was mentioned in the August 29 edition of the Legal Times and the September issue of Chicago Lawyer about being among 20 new fellows selected by the American College of Employee Benefits Counsel.
McDermott was recommended in Legal 500 European Edition 2005 for the practice area of employment: "McDermott Will & Emery Rechtsanwälte LLP showed commendable expertise in advising a European supplier on the employment aspects of post-merger integration following the acquisitions of two German companies, a varied and challenging mandate which required negotiations with trade unions and group works council on a mass redundancy program, and the establishment of a European works council."
Employee Benefits, Employment - Germany, Labor & Employment
David Fuller was quoted in the article "IRS Focus on Executive Benefits Raises Governance Concerns" in the July 20 newsletter, Dow Jones Corporate Governance regarding powerful executives using corporate jets for personal reasons.
McDermott was recommended in Der Syndikus - Jahrbuch 2005 - in the practice area of employee benefits: "McDermott Will & Emery Rechtsanwälte LLP did demonstrate their special know-how in the advice of an European supplier concerning labor aspects of an integration after a merger. The complex transaction included negotiation with unions and the works committee regarding a mass dismissal program as well as the formation of an European work committee."
Volker Teigelkötter, Employee Benefits, Employment - Germany, Germany
Chip Kerby was quoted in the June 1 issue of Employee Benefits News in an article about the Medicare prescription drug benefit and how most employers are expected to take advantage of the government subsidy for retiree plans. "Coordinating benefits with Parts A and B is simpler because employers know what the charges are going to be. Right now, though, they do not know what Medicare will pay for certain drugs, as the pricing and formulary will not be finalized until later his year," Mr. Kerby said.
, Employee Benefits, Health, Managed Care
Joseph Adams was quoted in the June 2005 issue of PlanSponsors in an article regarding how plan sponsors increasingly view the practice of offering investment advice to retirement plan participants as a manageable risk. "There's a clear reason to offer advice—almost everyone needs it," he observes, "But the reasons not to do it are: Are we capable of selecting the people to provide the advice? How are we going to monitor them? Will people really use it—regularly? Is there a risk of prohibited transactions? There's still a significant portion of the employer base that says, 'Well, we can articulate more clearly what might go wrong if we offer investment advice than if we don’t, so we’re not going to do it.'"
Joseph S. Adams, Employee Benefits
Andrew Liazos was quoted in the May 31 issue of Compliance Week in article about Marriott International recently informing the Securities and Exchange Commission that it is permanently suspending the payment of premiums on the life insurance policies of its CEO for fear that such payments might violate Section 402 of the Sarbanes-Oxley Act. According to Mr. Liazos, in the absence of SEC guidance about whether Section 402 prohibits split-value life insurance policies—and whether pre-SOX policies are permissible under a grandfather provision—many companies have discontinued split-value life insurance policies altogether.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Jared Kaplan was quoted in the April 16 issue of the Akron Beacon Journal in an article about the 19th Annual Ohio Employee Ownership Conference, in which attendees learned how to form and maintain an ESOP. Some business owners are daunted by the complicated legal, financial and regulatory maze of setting up an ESOP. "This is major surgery in most cases," Mr. Kaplan said. "It's not a little outpatient procedure."
Jared Kaplan, Employee Benefits, ESOPs
David Rogers was mentioned in the April 11 issue of the National Law Journal in an article featuring Eric Reicin, vice president and associate general counsel of Sallie Mae. When asked about some of the firms Sallie Mae uses and what kind of work they do for them, Mr. Reicin mentioned Mr. Rogers and the Firm in regard to our representation on employee benefits matters.
David E. Rogers, Employee Benefits
Andrew Liazos was mentioned in the March 2 issue of the Wall Street Journal regarding IRS audits of executive compensation at large U.S. public companies. Mr. Liazos commented that recently reported instances of tax noncompliance at these companies have raised issues of corporate governance which have gained the attention of the Chairmen of the Securities & Exchange Commission and the Public Company Accounting Oversight Board.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Joe Adams was quoted in the February 28 issue of Investment News in regard to life insurance agents asking the IRS to make it clear that separate life insurance contracts used in 403(b) tax-sheltered annuities are allowed to provide incidental death benefits. "The insurance companies are saying these are just individual contracts," said Mr. Adams. He continued by commenting that requiring the plans to have formal documents with employers switches the balance of power.
Joseph S. Adams, Employee Benefits
David Rogers was mentioned in the February 22 issue of Legal Times in an article featuring Eric Reicin, vice president and associate general counsel of Sallie Mae. When asked about some of the firms Sallie Mae uses and what kind of work they do for them, Mr. Reicin mentioned Mr. Rogers and the Firm in regard to our representation on employee benefits matters.
David E. Rogers, Employee Benefits
McDermott Will & Emery's Tax Practice was ranked fifth out of 100 in terms of size with our tax lawyers representing 19% of the total number of lawyers in the firm. Published by Tax Business in its January/February 2005 issue, the survey also ranks our tax practice among the top five in firms who are "putting tax first," and in the top 10 as "expertise in tax."
Employee Benefits, International, Private Client, Tax
Andrew Liazos was quoted in the February issue of CFO Magazine in regard to the ramifications of Sarbanes-Oxley and its impact on executives who have recently terminated employment with a public company following a restatement of its financial statements. Mr. Liazos commented that the Sarbanes-Oxley Act provides for the recapture of bonuses paid based on erroneous financial information if there is a restatement that results from misconduct regardless of the provisions in the executive's employment agreement.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Amy Gordon was quoted in the February issue of CFO Magazine in regard to company wellness programs and how it relates to employee and health privacy issues. "With the Health Insurance Portability and Accountability Act bona fide wellness program guidance still in proposed form, there have currently been no published cases focusing on discrimination issues with regard to employer-sponsored workplace wellness programs," commented Ms. Gordon. She continued by saying these cases could take years to show up in the court system.
Amy M. Gordon, Employee Benefits, Health, HIPAA
Katie Clark was quoted in the February 1 issue of Personnel Today regarding the case of Lionel Leventhal Ltd. v. North and the warning going out to employers to keep a paper trail during redundancy procedures as well as considering the issue of 'bumping'. "The ruling is saying when an employer makes redundancies it should consider bumping. Employers need to ensure there is a paper trail so they are protected. The employer shouldn't just assume that a senior employee won't accept a junior position." Ms. Clark emphasizes, "That is when the unfairness arises. The message to employers is not to make any assumptions."
Katie L. Clark, Employee Benefits, Employment - London, Labor & Employment, London
Andrew Liazos was quoted in the January 2005 issue of Workforce Management in regard to the redesigned, stricter audits by the IRS of employee pension plans and executive compensation programs. The article reiterates recommendations by the IRS for companies to perform internal reviews of their executive compensation programs and pension plans. Mr. Liazos commented on the findings of the IRS audits and says poor oversight is the cause for many of the problems with executive compensation plans.
Andrew C. Liazos, Employee Benefits, Executive Compensation
2004
David Fuller was quoted in the December 27 issue of Business Week in regard to the IRS' recent decision that gift certificates given to employees to purchase the traditional holiday turkey are a cash equivalent and are now taxable to employees. As a result, many companies have begun to tax the employees or decided not to issue the gift certificates this holiday season.
Chip Kerby was quoted in the December 20 issue of theAmerican Medical News in regard to Health Savings Accounts (HSAs). "HSAs allow people with high-deductible health insurance plans to contribute to an account that can be used to pay for a broad variety of qualified medical expenses ranging from hospital inpatient stays to over-the-counter drugs", commented Mr. Kerby.
Andrew Liazos was quoted in the December 6 issue of Tax Notes in regard to whether the American Jobs Creation Act of 2004 is too broad and may go too far. "Instead what we got is a statute that puts all sorts of artificial limitations on what can be done, and in addition to somewhat targeting what was perceived to be abusive, such as haircut provisions and the like, it raises questions about compensation packages that were always considered appropriate and well within the meaning of existing tax rules," commented Mr. Liazos.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Tax
Andrew Liazos was quoted in the November 30 issue of Workforce Management in regard to the IRS' intense corporate audit initiatives which were instituted a year ago. The article emphasizes the need for companies to perform comprehensive compliance reviews. "If they're spending money and hiring people and finding errors, they're serious," commented Mr. Liazos regarding the IRS' ever expanding staff and resources.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Jerry Kaplan was quoted on ESOPs in the fall issue of Business Week Small Business. The article reported that plans are often extolled, rightly, for improving employee morale and loyalty but a great benefit of ESOPs is often overlooked. ESOPs can be a tax-savvy way to raise money for expansion or to buy out owners. "Even though ESOPs are used by large companies, their sweet spot is small business," Mr. Kaplan commented.
Jared Kaplan, Employee Benefits, ESOPs
Andrew Liazos was quoted in the October 12 issue of the Washington Post in regard to a corporate tax bill passed by the U.S. Congress that will impact executive compensation. Mr. Liazos commented that executive compensation is under scrutiny in Congress, as well as the SEC, and that this tax bill would place new restrictions on executives' ability both to defer and to accelerate the payment of retirement benefits on a tax-advantaged basis.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Non-Qualified Deferred Compensation, Tax
Joe Adams was quoted by Forbes.com on September 22 in regard to a new report from the Government Accountability Office (GAO) that details conflicts of interest that can arise when a company's pension plans casts proxy votes for company stock held in the plan and recommends certain new measures designed to curb such conflicts. Although Joe indicated that the GAO recommendations are unlikely to be implemented anytime soon, Mr. Adams recommended that companies think about the report as part of a much larger debate about the risks associated with holding company stock held in pension plans. "Companies should be thinking about how to manage fiduciary risk, so the company's officers and directors don't get dragged into an ERISA lawsuit every time the company stock hiccups," Mr. Adams said.
Joseph S. Adams, Employee Benefits
Andrew Liazos and David Fuller were quoted in the September 2004 issue of Financial Executive International in regard to the IRS beginning to address "significant non-compliance by public companies with the tax law requirements applicable to executive compensation." "The agency has been developing audit guidelines for its examiners, but has not released a timetable for publication," commented Mr. Liazos. "We'd all love to see IRS guidelines, but they don't have any requirement to release them to the public, though they would release them to the agents for audits," Mr. Fuller said.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Non-Qualified Deferred Compensation, Tax
Nancy Gerrie was quoted in Business Insurance on August 16 regarding a proposed plan by Whirlpool to fund retiree health care benefits utilizing its captive insurance company, a tax-free trust and commercial life insurance. "This could be a way of getting more third-party business in the captive," Ms. Gerrie commented on this unusual arrangement which has been submitted to the Labor Department for approval.
Nancy S. Gerrie, Employee Benefits, Insurance
Susan Nash was quoted in the April issue of CFO magazine in regard to an increase of voluntary benefits now offered by companies. Ms. Nash commented that voluntary benefit programs, such as life, health, disability insurance, etc. are great for vendors because they have easy access to employees.
Susan M. Nash, Employee Benefits
Joe Adams and Todd Solomon were referenced in a February 26 article on Kiplinger.com which described the employee benefits challenges of responding to same gender marriages and civil unions. The book they coauthored ( Domestic Partner Benefits: An Employer's Guide )was referred to as "a guidebook widely used by employees."
Joseph S. Adams, Todd A. Solomon, Employee Benefits
2003
Steve Pavlick was quoted in the November issue of CFO magazine regarding getting exemptions from the Employee Benefits Security Administration of the Department of Labor (DOL) for noncash assets for fund pension plans. Mr. Pavlick estimated that the DOL issues only a few dozen each year for in-kind contributions. "If there just isn't any cash available, this is the only game in town. You can contribute anything you own." The DOL just doesn't "like to see a lot of junk put in these plans," commented Mr. Pavlick.
Stephen Pavlick PC, Employee Benefits
McDermott Will & Emery was mentioned in the July 21 issue of Legal Times in the article, "On the Record: Eunice Lin Bumgardner (general counsel to the Bureau of National Affairs – BNA)." When asked about to which outside counsel does BNA turn in various substantive areas, McDermott Will & Emery was mentioned for handling its pension and employee benefit issues for years.
Nancy Gerrie and Tom Jones were quoted in CFO Magazine on May 6 regarding the escalating costs of benefits and the use of captives to reinsure benefits. The big lure of using a captive to underwrite employee benefit risk is a decrease in taxes. Mr. Jones explained that for a company to qualify for a federal tax deduction on the premiums it pays to its captives, however, the captives must do as much as 50% of their business in risks unrelated to the parent company. Ms. Gerrie commented on the Department of Labor's (DOL) decision to fast-track procedures allowing employers to reinsure benefits through captives. "Usually it takes more than a year for the DOL to rule on an individual exemption," Ms. Gerrie commented, but that timeframe should be substantially reduced under the fast-track procedures.
Nancy S. Gerrie, Thomas M. Jones PC, Captive Insurance and Reinsurance, Employee Benefits, Tax
Jared Kaplan was quoted in the May issue of Inc. regarding ESOPs. Mr. Kaplan commented that ESOPs work best when there is a good relationship and communication with employees. "I encourage clients to keep paying 401(k) plans, or even provide higher level of benefits to compensate for the greater level of risk the employees are taking," Mr. Kaplan said.
Jared Kaplan, Employee Benefits, ESOPs
2002
Jared Kaplan was quoted in the December 10 issue of The Chicago Tribune commenting on United Airline's ESOPs in light of the company's bankruptcy filing. Mr. Kaplan commented that United's ESOP is unlikely to drive much change in ESOPs because "United's ESOP emerged out of a desire by pilots to get control of the company, and it didn't really even do that."
Jared Kaplan, Employee Benefits, ESOPs, Restructuring & Insolvency
Nancy Ross was quoted in the June 3 issue of Business Insurance in regard to the Equal Employment Opportunity Commission’s (EEOC) intent to propose a new regulation that would make altering, reducing or eliminating employer-sponsored health benefits when a retiree becomes eligible for Medicare not in violation of the federal age discrimination law. Ms. Ross expressed her satisfaction on the EEOC’s proposed regulation.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
McDermott Will & Emery was mentioned in the May 3 issue of the Chicago Daily Law Bulletin as having one of the two largest ESOP practices in the United States.
Nancy Gerrie was quoted in the May 1 issue of Risk & Insurance in an article addressing the use of a captive insurer for employee benefits.
Nancy S. Gerrie, Employee Benefits
Nancy Ross was quoted in the April 22 issue of Business Insurance in regard to the Circuit Court of Appeals decision, which ruled that the Age Discrimination in Employment Act also applies to retirees’ health benefit plans. Ms. Ross commented that this issue is "tremendously unresolved."
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
Nancy Ross was quoted in the January 21 issue of Business Insurance in regard to recent court decision, which did not distinguish between different types of welfare benefits in relation to its ruling.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation
2001
Jared Kaplan was quoted in the December 24 issue of Crain’s Chicago Business in regard to stock option plans offered by employers.
Jared Kaplan, Employee Benefits, ESOPs
Andrew Liazos commented in the November 18 issue of the Boston Globe on the tax law signed by President Bush. The law increases benefits allowed under employee retirement plans and IRAs, but several states, including California and Massachusetts, have not adopted the federal changes. Mr. Liazos commented that providing higher benefits as allowed under federal law may result in a loss of tax favored treatment for retirement benefits in these states.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Jared Kaplan was quoted in the November issue of Trust Regulatory News in regard to the risks associated with 401(k) plans.
Jared Kaplan, Employee Benefits, ESOPs
McDermott Will & Emery was ranked #1 by legal recruiters as having the most prestigious Health Law Practice and Employee Benefits and ERISA Practice (in a three-way tie). The Firm's Tax Practice was ranked #2 (in a three-way tie). The survey was part of the annual associates survey published in the October issue of American Lawyer.
Employee Benefits, Employee Benefits Litigation, Health, Tax
Nancy Ross was quoted in the July 16 issue of Business Insurance regarding a recent court decision that ruled discrimination against older retirees was not present when retirement incentive plans offer younger employees a much greater health insurance stipend than Medicare-eligible employees. Ms. Ross commented that the decision was straightforward and that equivalent stipends to various groups would be a "windfall" for older employees.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
Nancy Ross was quoted in the August 6 issue of Business Insurance in regard to the Equal Employment Opportunity Commission’s (EEOC) authority over the Age Discrimination in Employment Act (ADEA). The article addressed the introduction of H.R. 2558, which would clarify that employers would not be violating the ADEA if they reduced or eliminated health coverage for retired workers once they are eligible for Medicare.
Nancy G. Ross, Employee Benefits, Employee Benefits Litigation, Trial
