Employee Benefits

Overview

Well-drafted and administered benefit programs are effective recruitment and retention tools and enhance employee relations. They help keep your employees happy and productive, which can have a significant impact on your organization’s success. Conversely, problems in this arena can result in significant morale problems and litigation costs.

Constangy’s employee benefits team is prepared to guide your company through this highly complex legal area, which is governed primarily by the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (ERISA). Our attorneys understand the significance of the effective use of client resources in providing benefits as a part of the total compensation scheme. Employers face potential liability if they don’t meet the fiduciary duties and legal requirements tied to employee benefit plans. Even more frightening, individual liability is a risk for officers, directors and managers with responsibility over employee benefit plans and policies.

What Sets Us Apart

To minimize this risk, we often assist companies with all aspects of their compensation and benefit plans and programs, from design and implementation to bringing new employees on board, and helping assure a smooth exit after a termination. Our experience allows us to advise employers and others regarding all types of retirement and deferred compensation plans; health and other welfare benefit plans; fringe benefit programs; and executive compensation agreements. We work with employers, plans providers and insurers, giving us a thorough knowledge of the world of benefit administration.

What We Do

Our specialized practice group assists clients in implementing and administering any qualified retirement plan (e.g., 401(k), pension plan, profit sharing plan, employee stock ownership program), executive compensation program, welfare plan (e.g., health, life, disability, severance), or fringe benefit plan (e.g., educational assistance plan, cafeteria plan). We also assist in compliance reviews to avoid expensive corrections and penalties resulting from audits by the IRS or Department of Labor. We routinely advise clients regarding voluntary correction programs and corrections on audit with the IRS and Department of Labor. We also conduct training seminars and advise clients regarding compliance with the Affordable Care Act, HIPAA and COBRA. Our employee benefit plan advice covers all aspects of benefit plan establishment, administration, and compliance.

End-to-End Plan Support
We advise on 401(k), pension, Employee Stock Option Plan, and executive compensation programs from implementation to compliance.
Risk Reduction for Leaders
We help mitigate personal liability for fiduciaries and guide responses to investigations by the Internal Revenue Service and the U.S. Department of Labor.
Health & Welfare Compliance
We help employers understand and comply with ACA, COBRA, HIPAA, and ERISA rules, reducing risk and easing benefit plan administration.
Business-Aligned Compensation Design
We structure total rewards programs, including fringe benefits, to attract and retain key talent.

Experience

Matters

Counseled numerous clients regarding obligations under Internal Revenue Code Section 409A deferred compensation plan rules.
Advised a range of companies—including publicly traded, closely held, and tax-exempt organizations—on retirement plans, executive compensation programs, and welfare benefit issues, with a focus on compliance, recruitment, and retention strategies tailored to their business needs.
Guided a client through restructuring its retirement program to better support talent goals, including freezing benefits under a defined benefit pension plan and enhancing a defined contribution plan.
Assisted clients through merger and divestiture processes, including preparing and implementing new benefit plans for resulting companies for all types of benefit programs.
Assisted employers across diverse industries in evaluating Affordable Care Act requirements and assessing practical compliance options.
Provided strategic counsel to clients managing withdrawal liability risk.