United Airlines decides to terminate its employee pension plans. The governor of California announces plans to reform the state retirement system. Employers seek to cut coverage as health costs continue to soar. As retirement and health care issues come to the fore in national, state and local governments, the law of employee benefits and compensation has become one of the fastest growing areas of law. Major laws and regulations governing benefits and compensation provided by employers now appear on an almost weekly basis. Benefits and compensation lawsuits have doubled since 2000.
This course examines the three basic areas of employee benefits and compensation: retirement plans, health and welfare plans, and executive compensation (including nonqualified retirement plans). The class analyzes the key components of various types of employee plans, the benefits they provide to employees and the burdens and responsibilities they place on (as well as the benefits they provide to) employers. In order to do this, it examines the two main areas of law that govern benefits and compensation: the Internal Revenue Code (very selected sections) and the Employee Retirement Income Security Act of 1974 ("ERISA"). The Internal Revenue Code provides bright-line tests and includes rules and regulations that must be followed. ERISA provides more general principles open to interpretation under specific facts and circumstances. Much of ERISA is case-driven; in contrast, the Internal Revenue Code is often driven by specific government guidance. This blend of the specific and the conceptual, ideals and their practical implantation is the basis of the complex nature of this area of legal practice. The class includes presentations by practitioners in the field and by benefits and compensation specialists from major area firms.
This course does not overlap with either Employment Law or Labor Law; instead, it is a valuable complement to both courses.