Early retirement window programs within qualified plans - complying with the final coverage and nondiscrimination rules

Article Abstract:

Employers wishing to use qualified pension plans as a means of promoting early retirement to downsize their workforces should be aware that the plan modifications likely to accompany an early retirement incentive program may jeopardize the plan's tax-favored status. Early retirement plans must meet similar coverage and nondiscrimination tests. Nondiscrimination testing focuses on the amount of benefits, the availability of rights and benefits and the timing of the offered plan amendment. Coverage and nondiscrimination requirements ensure that benefits do not favor highly compensated employees.

Taxation, Early retirement

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Worker misclassification - a qualified plan perspective

Article Abstract:

ERISA-qualified employee benefit plan administrators should carefully assess whether independent contractor status applies to employed persons. Misclassification can result in serious tax and other legal consequences. Each employer must assess the facts of each situation in light of definitions of employee which are found in tax law and common law. Regulations, laws, and current factual situations should continually be monitored.

Employee benefits, Workers, Independent contractors

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The new qualified plan nondiscrimination testing rules: there is a silver lining

Article Abstract:

IRS nondiscrimination rules in s. 401(a)(4) provide employers with specific guidelines instead of the previous nebulous rules ensuring compliance in employee benefits plans. The 'bright line' approach encourages defined plans and reduces employers' potential liability because of different interpretations of the regulations. The new rules also allow for retroactive correction to comply with the rules.

Employment discrimination

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