On Oct. 5, 2021, Gov. Phil Murphy of New Jersey signed legislation expanding available protections under New Jersey’s Law Against Discrimination (LAD) to private-sector workers over 70 years of age.
COVID-19 and Retirement Plan Partial Terminations
Among the longer-term considerations for employer layoff and furlough decisions is the impact on a single employer pension, profit sharing, or 401(k) plan.
In general, a 401(k) plan can sustain a partial termination when 20% of the participants in a given year are involuntarily terminated. 26 U.S.C. §411(d); Rev. Proc. 2007-43. Partial termination is a
First Circuit Concludes That Two Private Equity Funds Were Not Liable for Pension Fund Withdrawal Liability of Portfolio Company
In its recent decision in Sun Capital Partners III, LP v. New England Teamsters & Trucking Indus. Pension Fund, the First Circuit Court of Appeals decided that two investment funds established by a private equity firm to acquire and provide management services to various portfolio companies were not liable for the withdrawal liabilities for
IRS Expands Retirement Plan Self-Correction Program
Our January 2019 GT Benefits and Compensation Alert addressed the unprecedented level of potential liability for compliance failures in 401(k) and other retirement plans and the importance of performing a plan compliance review and correcting plan document or operational failures before an IRS auditor knocks on the door. Doing nothing and playing the audit lottery
Not-for-profit Hospitals and Health Care Providers Facing Retirement Plan Class Actions
There has been much media coverage of the recent class action lawsuits filed against some of the most prestigious universities in the United States by university employees. These class action lawsuits allege that the universities breached their fiduciary obligations in running their defined contribution 403(b) retirement plans by allowing the plans to pay excessive investment,