401 (k) & 403(b) Plans
The firm consults and drafts plan documents and employee materials for a wide range of these plans. The Firm takes pride in translating complex government rules into understandable language. Mistakes in plan operations inevitably happen, even in the most conscientious human resource and payroll departments. When they do, the Firm helps clients in fixing them. The Firm’s attorneys are experts in the Correction Procedures of the U.S. Department of Labor and the Internal Revenue Service. (Fiduciary advice is also a substantial part of the practice and is described separately.)
Engagements include:
- Preparation of custom-drafted 401(k) plan and employee communication materials for NYSE-listed company with 2,000 employees.
- Preparation of custom 403(b) plan and SPD for well-known college integrating the financial terms and restrictions of TIAA-CREF products and Fidelity mutual fund and brokerage products.
- Legal advice to prominent tax-exempt foundations for the special limitations and exceptions applicable under IRC §403(b) and under IRC §415.
- Preparation of custom-drafted 401(k) plan for NYSE-listed company with 8,000 employees in which employer stock was a component.
- Consultation and oversight for adoption of model 403(b) documents of financial vendor for use by tax-exempt hospital with 2,000 employees.
- Legal review of NYSE-listed company’s adoption of prototype 401(k) plan for 12,000 employees. Custom preparation of plain-English SPD because vendor’s SPD was not user-friendly.
- Consultation for and drafting of 401(k) plan and SPD for Puerto Rico subsidiary of NYSE-listed company.
- Representation before IRS and DOL under their correction processes for numerous errors, including late adoption of required amendments, misallocation of contributions, failure to enroll participants on a timely basis, and use of incorrect compensation definitions.
- Consultation for and drafting of 401(k) plan and SPD for 700 person medical group.
Defined Benefit Plans
The Firm consults and drafts plan documents and employee materials for defined benefit plans. The Firm works well with actuaries and are familiar with “traditional” defined benefit plans as well as cash balance and new comparability plans. In corporate transactions, defined benefit plans assume great importance and we assist corporate attorneys less familiar with those entities in analyzing whether the “risk” is real or imagined. Attorney Chimento, as former Special Counsel to the Pension Benefit Guaranty Corporation, brings the perspective of a regulator to this area of the practice.
Engagements include:
- Preparation of custom-drafted cash balance plan and employee communication materials for hospital with 2,000 employees.
- Ongoing consultation for a bank client with a prototype defined benefit plan and 2,000 employees.
- Preparation of custom-drafted defined benefit plan and employee communication materials for NYSE-listed company with 2,000 employees.
- Preparation of custom-drafted defined benefit plan and employee communication materials for well-known investment firm based in Manhattan.
- Preparation of defined benefit plan and employee communication materials for a unionized facility of an NYSE-listed company
- Preparation of “frozen” defined benefit plan and employee communication materials for employees of an acquired company of an NYSE-listed company.
- Assistance to clients who are acquire other businesses with their due diligence review of defined benefit plans sponsored by target companies.
