About the Course
Introduction
This CLE course will guide employee benefits counsel and advisers on practical methods and best practices in structuring severance plans in compliance with ERISA. The panel will discuss what makes a severance plan subject to ERISA, requirements to avoid penalties, Section 409A considerations, and the benefits of having an ERISA severance plan.
Description
ERISA applies to retirement and group healthcare plans, but severance pay may constitute a "plan" under ERISA depending on the nature of the arrangement. Companies must identify the elements of severance arrangements that form a plan under ERISA.
ERISA governs the implementation and termination of pension and welfare benefit plans, which can include severance arrangements such as one-time payments, individual agreements, policies, or more formal severance plans. A severance arrangement is subject to ERISA if a reasonable person can determine the intended benefits, beneficiaries, the source of financing, and the procedures for receiving benefits. If a severance plan is subject to ERISA, counsel and advisers must ensure that clients satisfy all legal obligations under ERISA. Noncompliance may result in civil and criminal penalties.
There are advantages to establishing and maintaining ERISA compliance for severance arrangements that allow employers to avoid or limit potential litigation and penalties. A compliant severance plan provides for the preemption of state laws under ERISA and requires participants to submit disputes to the plan administrator first per applicable ERISA claims procedures.
Listen as our panel discusses methods to ensure ERISA compliance in the design, use, and implementation of severance plans, the benefits and potential ramifications of severance plans subject to ERISA, and best practices in drafting severance plan documentation to limit or avoid litigation.
Presented By
Ms. Mikhaylina is an associate in the Employee Benefits & Executive Compensation group. She performs legal research and analysis, assists in the review and preparation of plan documents, and supports employers in a variety of employee benefits matters. Ms. Mikhaylina regularly works with defined contribution and defined benefit pension plans and advises clients on day-to-day plan operations, voluntary correction submissions with the Internal Revenue Service and Department of Labor, benefit disputes, USERRA questions, and plan amendments, including SECURE 2.0 amendments. In the context of mergers and acquisitions, she assists clients with due diligence requests, representations and warranties, and 280G analysis. Ms. Mikhaylina also has experience with governmental plans, MEWA compliance, drafting and reviewing cafeteria plans, health and welfare wrap plans, and QMCSO procedures.
Mr. Murray concentrates his practice in the area of employee benefits, with a focus on ERISA litigation. He represents plan sponsors, trustees, and other fiduciaries in a wide range of employee benefits cases, including 401(k) class action litigation, claims for retirement, medical, disability and other benefits, ESOP and multiemployer pension plan disputes, and cases involving executive compensation. In addition to his litigation practice, Mr. Murray counsels clients on a variety of matters, including fiduciary responsibility, operational corrections, and regulatory compliance. He also represents plan fiduciaries in Department of Labor investigations. Mr. Murray has been recognized as a Southern California “Rising Star” by Super Lawyers Magazine since 2018. He has written articles and presented on a number of ERISA topics, including indemnity and contribution in ERISA litigation, recovery of attorney’s fees under ERISA, and arbitration of ERISA claims.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Tuesday, March 3, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Application of ERISA to severance plans and ramifications of noncompliance
II. Advantages of establishing severance plans in accord with ERISA requirements
III. Section 409A implications for severance benefits
IV. Best practices for drafting severance plan documentation to limit or avoid litigation
The panel will review these and other critical issues:
- Determining whether a severance plan is subject to ERISA
- What requirements must a severance arrangement satisfy if it is considered a "plan" under ERISA?
- What are the advantages of designing an ERISA-compliant severance plan?
- How does Section 409A apply to severance benefits?
- Best practices for drafting plan documentation to limit potential liability
