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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    ERISA

Date & Time
  • event Date

    Wednesday, February 1, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will provide ERISA counsel with a review of controlled group and successor liability theories by which an entity can be held jointly and severally liable for unpaid or underfunded pension liabilities of another entity.

Faculty

Taylor Wedge French
Partner
Mcguire Woods LLP

Mr. French's employee benefits practice covers a wide-range of traditional executive compensation and employee benefits matters along with a variety of inter-disciplinary practice areas and industries that are affected by executive compensation and employee benefits laws. He works with clients to design, implement and maintain equity compensation plans, long-term incentive plans, bonus programs and non-qualified deferred compensation arrangements for executives, employees and non-employee directors. He has extensive experience in the creation and maintenance of all manner of tax-qualified retirement plans and advises and negotiates executive compensation and employee benefits matters relating to private equity, mergers and acquisitions, and other corporate transactions. 

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Robert B. Wynne
Partner
Mcguire Woods LLP

Mr. Wynne practices in the firm's tax and employee benefits department, where he advises public and private clients with respect to the design and administration of retirement and welfare plans, compensation arrangements, and compliance requirements. He is a published author on employee benefits issues.

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Description

Pension funding obligations are not limited to the immediate employer and sponsor of a pension plan. Under ERISA, each member of a "controlled group" is jointly and severally liable for certain defined benefit pension plan liabilities, including withdrawal liability that arises when an employer ceases contributions to a multiemployer pension plan. A company's "controlled group" could also include private investment funds invested in the company.

In addition to controlled group liability, courts have imposed successor liability on a buyer in asset deals where the buyer had actual or even constructive notice of the pension plan liabilities before the sale and continues the seller's operations. The majority of those cases have involved actions by multiemployer pension plans to collect withdrawal liability from unrelated third parties, but this analysis of successor liability could also become more prevalent in the single-employer plan context.

Controlled group and successor liability are a means of targeting deep pockets to satisfy benefit plan liabilities in the context of asset sales and private equity investments. Also, successor liability claims are not limited to traditional defined benefit and multiemployer plans, as similar claims may arise in the context of other types of ERISA plans.

Listen as the panel provides ERISA counsel with a review of controlled group and successor liability theories by which an entity can be held jointly and severally liable for unpaid or underfunded pension liabilities of another entity.

Outline

  1. Controlled group liability
    1. Unfunded pension liability and PBGC claims
    2. Multiemployer pension plan withdrawal liability
    3. Identifying controlled group members
    4. Analyzing potential liability of the controlled group
    5. Private equity fund liability for plan liabilities of portfolio companies
  2. Successor liability
    1. Common law standards for successor liability
    2. Expanded rules of successor liability under ERISA
    3. Corporate spin-offs and pension liabilities
  3. Transaction considerations

Benefits

The panel will review these and other key issues:

  • Controlled group liability sought by multiemployer plans and the PBGC
  • Determining what constitutes a "controlled group" and "trades or businesses"
  • Expanded standards of successor liability and methods to limit them
  • Steps buyers in asset purchase deals can take to minimize successor liability for the seller's plan liabilities