Media Mentions
2010
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 & Pensions, 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 & Pensions
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 & Pensions
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 & Pensions
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 & Pensions, Executive Compensation
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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions
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 & Pensions
Paul Melot de Beauregard was quoted in Impulse (November 2009) on the reduction of special payments to employees in times of crisis. Employers have to meet high requirements of the Federal Labour Court – a revocable or an optional payment will make a huge difference.
Paul Melot de Beauregard, Employee Benefits & Pensions, Employment - Germany, Germany
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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions, Executive Compensation
Paul Melot de Beauregard was quoted in Financial Times Deutschland on July 21 concerning the voluntarily payment of bonuses during a financial crisis.
Paul Melot de Beauregard, Employee Benefits & Pensions, Employment - Germany, Germany, Labor & Employment
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 & Pensions
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 & Pensions
Paul Melot de Beauregard was quoted in Financial Times Deutschland, FTD.de, and Capital.de regarding the dismissal of managers and their right of compensation in a financial crisis.
Paul Melot de Beauregard, Employee Benefits & Pensions, Employment - Germany, Germany, Labor & Employment
Sandra Urban-Crell was interviewed by the Financial Times Deutschland (June 30) concerning the consequences for companies after resigning from the employers’ association.
Sandra Urban-Crell, Employee Benefits & Pensions, Employment - Germany, Germany, Labor & Employment
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 & Pensions
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 & Pensions, 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 & Pensions
Sandra Urban-Crell was quoted by Financial Times Deutschland concerning reduced compensation for elder employees in social plans.
Sandra Urban-Crell, Employee Benefits & Pensions, Employment - Germany, Germany
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 & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, Tax Exempt Bonds, Welfare Benefit Plans
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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, HIPAA, Welfare Benefit Plans
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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions
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.
, Employee Benefits & Pensions
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 & Pensions, 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.
, Employee Benefits & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, Germany, Labor & Employment
Rick Mitchell, Uwe Goetker, Norbert Schulte, Dirk Pohl, Volker Teigelkotter, Georgia Quenby and Razia Begum were mentioned in the August issue of Juve Rechtsmarkt regarding the advise of the owner of the Group, Dr Alfred Schefenacker on all aspects of the consensual restructuring of the Schefenacker Group.
Uwe Goetker, Richard Mitchell, Dirk Pohl, Georgia Quenby, Norbert Schulte, Volker Teigelkötter, Corporate, Employee Benefits & Pensions, Germany, London, Tax
Uwe Goetker, Norbert Schulte, Rick Mitchell, Georgia Quenby, 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, Georgia Quenby, Norbert Schulte, Volker Teigelkötter, Corporate, Employee Benefits & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions
Ray Fernando was mentioned in the May 21 edition of the Daily Deal/The Deal about recently joining McDermott’s Employee Benefits Department in Chicago.
Raymond M. Fernando, Employee Benefits & Pensions
Renata Ferrari was mentioned in the May 14 edition of the Massachusetts Lawyers Weekly about recently joining McDermott’s Employee Benefits Department in Boston.
, Employee Benefits & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, Employee Benefits - Insurance, Employee Benefits Litigation, Insurance
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 & Pensions, Employment - Germany, Germany
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 & Pensions, Intellectual Property
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 & Pensions, 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.
, Employee Benefits & Pensions
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 & Pensions, Health
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 & Pensions, 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.
, Employee Benefits & Pensions
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."
, Employee Benefits & Pensions
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 & Pensions, 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 & Pensions, 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.
, Employee Benefits & Pensions
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 & Pensions, 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 & Pensions, 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.
, Employee Benefits & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions
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.
, Employee Benefits & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions
Ryoko Mochizuki was quoted in the May 1 issue of Kigyo Gaikyo News in an article regarding strategic localization.
, Employee Benefits & Pensions
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 & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions, Executive Compensation
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 & Pensions, 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 & Pensions, 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 & Pensions, Employment - Germany, Germany
Volker Teigelkötter was quoted in the December 15 issue of Handelsblatt regarding changing tax law for compensations.
Volker Teigelkötter, Employee Benefits & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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.
, Employee Benefits & Pensions
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 & Pensions, 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.
, Employee Benefits & Pensions, Tax
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 & Pensions, Employment - Germany, Germany
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 & Pensions
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 & Pensions, Health, Managed Care
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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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.
, Employee Benefits & Pensions, Tax
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.
, Employee Benefits & Pensions, Health
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions
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 & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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.
Employee Benefits & Pensions, ESOPs
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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, Employee Benefits Litigation, Trial
