ERISA Lawyer

Any business that offers employee benefits, such as retirement plans (401(k), pension), health insurance, life insurance, disability benefits, or other welfare plans, should consult with an ERISA lawyer. This applies to businesses of all sizes, from small to large corporations. Whether setting up a new benefit plan, revising an existing one, or facing an audit, an ERISA lawyer can help ensure you comply with all applicable laws and regulations.

Failing to comply with ERISA can result in significant penalties, including fines, loss of tax benefits, and potential lawsuits from employees. If an employee benefits plan is found to be non-compliant, it can lead to the suspension of plan contributions or the plan’s disqualification. Additionally, businesses may be held liable for breaches of fiduciary duty, which can result in financial penalties and legal action. Consulting an ERISA lawyer can help prevent these costly mistakes and keep your plan in good standing.

Fiduciaries are individuals or entities responsible for managing employee benefit plans and their assets. Under ERISA, fiduciaries must act in the best interests of plan participants, ensuring that investments are prudent, fees are reasonable, and benefits are properly managed. They must also follow the plan’s governing documents and comply with the law. Failure to fulfill fiduciary duties can result in legal liability, so it’s important to consult with an ERISA lawyer to ensure compliance with these duties.

A defined benefit plan promises a specific amount of retirement benefits to employees based on a formula (e.g., years of service and salary history). These plans place the investment risk on the employer. On the other hand, a defined contribution plan, like a 401(k), depends on contributions from both the employer and employee, with the final benefit depending on the plan’s investment performance. Defined contribution plans generally involve less risk for the employer but more responsibility for employees in managing their accounts.

ERISA lawyers assist businesses in managing disputes that may arise with plan participants, such as denied claims, breaches of fiduciary duty, or disagreements over benefit eligibility. They also help resolve issues with regulatory agencies like the Department of Labor, the IRS, or the Pension Benefit Guaranty Corporation (PBGC). If necessary, ERISA lawyers represent businesses in litigation, mediation, or settlement negotiations to protect their interests.

Yes, an ERISA lawyer can assist businesses during plan audits conducted by the Department of Labor or the IRS. Audits can be complex and require detailed documentation and responses to questions from regulators. An ERISA lawyer helps ensure that all necessary records are available and that the business complies with the audit process. They can also guide the business in resolving any issues during the audit to minimize potential penalties.

When a business terminates an employee benefit plan, an ERISA lawyer ensures the process is handled correctly. They assist with notifying employees, distributing benefits, and following legal procedures for plan termination. They also help businesses avoid unintended tax consequences or penalties resulting from improper plan terminations.