Business reorganizations, such as mergers and acquisitions, impact many aspects of benefits compliance. In this webinar, we discussed health and welfare benefit compliance considerations that often arise during a business reorganization. Topics addressed included considerations under the ACA, COBRA, ERISA, and Code Sections 125 and 105. In addition, we reviewed how the transaction structure, benefit offerings, employer size, and plan funding impact benefits compliance obligations. By the end of the presentation, participants will have a better understanding of the benefits compliance concerns that should be addressed, often early on, in the business reorganization process.
Agenda
- Background and Preliminary Points
- Asset vs. Stock Transactions
- ERISA Considerations
- ACA Employer Mandate
- COBRA Obligations
- Cafeteria Plans/FSA Options
- Nondiscrimination Rules
- Key Takeaways
Key Takeaways
Employer Considerations
- Employers should consider benefits administration early on during due diligence.
- Counsel should be involved.
- Know the type of the transaction (i.e., asset/stock), ownership structure and controlled group status.
- Default rules exist for COBRA and health FSAs.
- Parties can negotiate other terms that should be included in the purchase agreement.
- Communicate any benefit plan changes in advance with employees.
- Ask your consultant or broker for a copy of our M&A employee benefits publication noted below.
NFP Resources
NFP publication with practical tips and examples:
Health Benefits Compliance Considerations in Mergers and Acquisitions: A Guide for Employers