Under ERISA, those who administer, manage, or control plan assets have a fiduciary duty to plan participants. This fiduciary duty requires them to act solely in the interest of plan participants and beneficiaries. It is important for plan fiduciaries to understand their roles and responsibiliti...
An Employee Stock Ownership Plans (ESOPs) become more popular in the U.S., employee ownership legislation is making its way through Congress to broaden the appeal of these unique benefit plans. Two bills, one in the House and one in the Senate, have recently made it through the Small Business Com...
It has generally been the Department of Labors (DOLs) position that certain fiduciary indemnification agreements in ESOPs are void as against public policy. There is no clear legal precedent on the issue of how far indemnification agreements can go before they become invalid. However, recent ES...
In a Union-Tribune article, San Diego was listed as number 2 in employment in active lifestyle-oriented businesses in the country. There are now more than 1,200 such companies in the area employing more than 23,000, making an economic impact of over $1.4 billion. Some of these sporting and lifest...
Southern California business owners in the specialty food industry know how difficult it can be to succeed in the ever-changing and competitive market. One of the greatest assets any business can have is a dedicated group of employees committed to the continued growth of the company. To both fost...
Like many types of insurance, you may go years paying for premiums and never need to take advantage of the coverage. When insurance is not mandatory, deciding whether to purchase a policy may depend on weighing the costs and benefits. However, when fiduciary liability associated with your company...
Employee-owned companies have shown increased productivity and performance, according to recent surveys. However, employee-ownership is also associated with higher rates of employee retention. Some companies undervalue the cost-savings of higher employee retention rates when considering whether t...
ANSWER: The San Diego area is renowned as the headquarters of more than 150 breweries, earning it the nickname of the “Craft Beer Capitol” of the U.S. However, while many brewery owners can explain the nuances of lautering and even wax poetic about fermentation techniques, they may feel out of th...
Employee ownership is associated with tax savings, increased production, and higher employee retention rates. However, employee ownership is not always the best fit for some companies. Business owners should be prepared for the possibility that they may have to freeze or terminate an ESOP and rev...
Many business owners are still relatively unfamiliar with ESOPs. As the number of Employee Stock Ownership Programs continue to grow, companies are looking into the benefits of an ESOP. An Employee Stock Ownership Plan (ESOP) is a profit sharing plan structured as a qualified defined contributio...
After spending a lifetime building your company, it can be difficult to consider retirement. It is not easy to hand off your company to a new generation out of concern that the new owners do not have the same dedication to the company you built from scratch. For many business owners, an ESOP prov...
One of the important benefits to companies in establishing a retirement plan for its employees is the tax-favored status granted to a 401(k), 403(b), SEP, or SIMPLE IRA. This includes deducting employer contributions to such employee plans. However, in order to maintain tax-favored status, the pl...
Many companies eyeing the benefits of an ESOP are waiting to see how the new tax law changes will affect the tax benefits of employee ownership. However, it appears that the tax benefits associated with an ESOP will continue and even expand into the future. S corporations may soon get some of the...
The U.S. Department of Labor has announced new rules amending the claims procedures for disability benefit plans will go into effect April 1, 2018. According to the DOL, this new rule change will “give Americas workers new procedural protections when dealing with plan fiduciaries and insurance p...
For anyone watching the latest in Employee Stock Ownership Plans (ESOP), there has been a lot of legislative action taking place at the federal and state level in recent months. Politicians on both sides have been promoting ESOPs as a way to increase economic growth and opportunity for employees ...
The National Taxpayer Advocate (NTA) is an independent organization within the IRS that was established to ensure fair treatment for taxpayers and help taxpayers understand their rights. The NTAs inaugural edition of the Purple Book contains recommendations for tax law and policy to “strengthen ...
San Diego has become a center of craft brewing. With more than 150 breweries, San Diego has been called the Craft Beer Capital of America. This includes some of the countrys first craft breweries like Karl Strauss and Pizza Port, as well as some of the largest and most popular beer brands like B...
Most pension plans offer defined benefits for participants at the time they retire. However, over time, many plan participants move multiple times for a new job or to downsize in retirement. This can leave the pension plan without the current contact information for plan participants and leave in...
With the new Department of Labor fiduciary rules further pushed back to go into effect on January 1, 2019, plan fiduciaries have more time to review employee benefit plan best practices. Employee benefit plan best practices include a review of who is involved in what role, the plan administrator...
With each New Year comes the inevitable changes to employee benefits that affect plan sponsors, administrators, and participants. These changes can involve adjustments to the individual plan benefits, plan eligibility, and new state and federal laws. Employers and plan administrators should revie...
By Paul D. Woodard, Esq. Contributing Author: Kristine M. Custodio, Advanced Certified Paralegal Following are the Department of Labors penalties as they relate to ERISA violations pursuant to the Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2018, which became effe...
Many defense contractors are turning towards employee-ownership as a way take advantage of tax savings and reward employees by giving them a stake in the company they work for. Specifically, many defense contractors are utilizing employee stock ownership Plans (ESOPs) as a way to provide owners w...
Employers involved in an ERISA dispute can face a long road of litigation, and the time and expenses that go along with it. Many ERISA claims filed by former employees have a very low chance of success but that does not eliminate the need for the employer to put in the time and money to fight the...
The unemployment rate across the country remains low, dropping to 3.7% in San Diego County in October. This low unemployment rate has made it difficult for many employers to find the workers they need to keep their businesses growing. Employers who are unable to compete with higher salary offers ...
There are a number of benefits to setting up an employee retirement plan for both employers and employees. This includes the ability to attract top talent and incentivize current employees to stay with the company to maximize their benefits. However, one of the most compelling reasons employers s...
We help establish a customized plan that meets regulatory requirements as a tax qualified plan. Following implementation, our attorneys can assist clients and their plan administrator with regular reviews and updates to help with regulatory compliance for the plan's operation, and continued effectiveness in meeting the client's specific goals.
We are dedicated to employee ownership. When you come to us for ESOP services, you receive influential legal counsel who stand beside you to help you stay informed, in compliance, and abreast of the latest developments-all to help you realize your plan goals as fully and effectively as possible.
A QDRO is a specially designed court order that is required for the division of retirement benefits in a family law case. Many family law attorneys do not possess the expertise necessary to divide retirement benefits or stock options upon divorce. We have extensive experience in dividing qualified plans, government plans, IRAs and stock options between the employee spouse and non-employee spouse.