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Course Details

This CLE webinar will provide employee benefits counsel guidance on the use of forfeitures in qualified retirement plans and analyze the current state of law in recent lawsuits. The panel will discuss recent developments, structuring and compliance risks, timing of use issues, permitted uses, reducing employer contributions and paying plan expenses, forfeitures in defined benefit plans, and other key issues.

Faculty

Description

Employer-sponsored retirement plans continue to experience heightened compliance risks stemming from plan forfeitures resulting in a series of lawsuits against fiduciaries. Plan sponsors and their counsel seeking to use forfeitures must determine when forfeitures occur and how to use them appropriately in light of recent lawsuits, in addition to other key considerations.

Forfeitures are plan assets derived from non-vested employer contributions that are forfeited from a participant's account when that participant terminates employment and is not fully vested. The plan document typically specifies the timing of the forfeiture, vesting schedules, applicable IRS rules, and in some cases is left at the discretion of the fiduciary. Instead of using employer assets, these forfeited funds can be used to pay for employer contributions or plan expenses. However, plan sponsors face a number of challenges stemming from IRS rules, plan documentation, timing, and other key items that must be considered to mitigate compliance risks.

Listen as our panel discusses recent developments and ERISA forfeiture lawsuits, the timing of use issues, permitted uses, reducing employer contributions and paying plan expenses, risks, and other key issues.

Outline

I. Overview of forfeitures

II. Uses of plan forfeitures and challenges

III. Other key considerations

A. Plan corrections

B. Plans with full vesting

C. Plan termination

IV. Recent lawsuits and mitigating risks

V. Best practices for mitigating forfeiture compliance risks

Benefits

The panel will discuss these and other key issues:

  • What are the uses of plan forfeitures?
  • What impact do plan forfeitures have on plan corrections, plans with full vesting, and plan termination?
  • What are the key issues presented in recent ERISA forfeiture lawsuits?
  • What steps must be taken to mitigate forfeiture compliance risks?