Certain income maintenance benefits not "other benefits" permissible under VEBAs

Article Abstract:

The IRS has indicated in General Counsel Memorandum 39879 that events triggering voluntary employees' beneficiary association (VEBA) benefits must be outside a person's control and impair or halt their earning power. This memorandum marks the first time the IRS has made clear that VEBA benefits will not enjoy the tax-exempt status of life, sickness or disability benefits if they are triggered by voluntary actions.

Tax exemption, Tax exemptions, Voluntary employees' beneficiary associations

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IRS expands scope of meaning of "change in control" under golden parachute rules

Article Abstract:

This article concerns IRS Private Letter Ruling 199920009 where the IRS found that the IRC section 280G golden parachute rules were not violated by an employer merger not resulting in a change of "effective control." The merger did not trigger the loss of employer tax deductions for compensation paid or the section 4999 excess payment excise tax penalty.

United States, Employee Benefits & Services, Acquisitions and mergers, Human resource management, Influence, Labor contracts

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