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ERISA is a friend of mineAuthor: Lockton Companies
Whoever said employee benefits compliance can't be fun was pretty much exactly right ... until now. The bold and more than modestly deranged ERISA experts from Lockton Benefit Group's Compliance Services division are throwing all caution to the wind and attempting to make plain the intricacies of employee benefits while laughing through it all. Their motto: "If after all this effort we can elicit a single laugh, the fact that we skipped lunch to record this will more or less have been worth it." Not legal advice: Nothing in this podcast should be construed as legal advice (although it may be considered advice for better living). Lockton may not be considered your legal counsel, and communications with Lockton's Compliance Services group are not privileged under the attorney-client privilege. Language: en Genres: Business Contact email: Get it Feed URL: Get it iTunes ID: Get it Trailer: |
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Cousin Eddie on the COBRA doorstep: Do you really have to open the door?
Episode 4
Monday, 25 April, 2022
In the larger scheme of corporate mergers and acquisitions, benefits issues are just nuisance issues ... until they're not. Buyers in stock and asset purchases are often stunned to learn that they may own COBRA liability related to the seller's former employees (and their dependents). And they might be required to open the doors of their group health plans to unwanted guests – the metaphorical Cousin Eddie – for up to 36 months. In this, the final substantive episode of the final season of ERISA is a Friend of Mine, Ed and Scott unravel the beguiling mysteries of COBRA (and health FSA) coverage in the M&A. The episode explores: Why and how does the stock vs. asset nature of a sale affect COBRA liabilities? If the parties to a corporate transaction contractually assign COBRA responsibility, what happens if the obligee drops the COBRA ball? How is sorting the COBRA obligations in an M&A like Scott trying to get all his kids out the door in the morning? How can buyers and sellers deal with health FSA coverage to make the corporate transaction painless for enrollees in the seller's FSA?
