The Fiduciary’s Role In A Merger Or Acquisition

The primary role of an ERISA fiduciary is to execute the plan in accordance with the interest of the participants and beneficiaries and for the exclusive purpose of providing benefits must follow the terms of plan documents to the extent that the plan terms are consistent with ERISA.

If your organization is facing a Merger or Acquisition, ERISA requires you to follow a specific set of steps to protect participants and beneficiaries of your Health & Welfare Benefits or Qualified Retirement Plan

As a Plan Sponsor or Fiduciary, you must first engage in due diligence to understand the existing plans administered by all parties in the transaction before the deal is closed – so you can ensure that any plan you are inheriting is stable and in compliance with ERISA. 

Then, you must decide whether to:

  1. Maintain the buyer’s and seller’s plans separately.
  2. Terminate existing plans, so you can move all employees under one centralized plan. Or, 
  3. Merge the seller’s plan into the buyer’s plan, without compromising any of the existing benefits employees are due.

Due to the complex nature of these corporate transactions, we provide an array of ERISA compliance services to ensure your Merger or Acquisition runs as smoothly as possible in regards to your ERISA Plan.

How We Can Help

  • Perform a comprehensive review of the Buyer’s and Seller’s current ERISA Plans
  • Identify issues or problems in either party’s current plan structure and compliance measures
  • Find solutions to remedy any issues or problems with the plan before the transaction is closed
  • Provide a written report outlining the action steps to implement solutions so the buyer and seller have complete knowledge of the details before closing
  • Provide a follow-up review to ensure all steps were taken and the process was clearly documented for future DOL inquiries or audits

Streamlined Plan Transitioning & Legal Compliance

Mergers & Acquisitions are famous for being the most complex transactions in the business world. Ensuring legal compliance is met when inheriting an ERISA Plan is just one obstacle along the way.

However, if done improperly, this will quickly become one of your biggest (and most expensive) problems to correct after the deal is closed.

ERISA Advisory Group minimizes the risk of facing legal compliance issues. Our ERISA fiduciary services are available to streamline this process for you and guarantee legal compliance.

Contact ERISA Advisory Group To Ensure Your Transition Is ERISA Compliant

If you are facing a Merger or Acquisition and want to ensure that your company properly transitions its ERISA Health & Welfare or Qualified Retirement Plan, then contact ERISA Advisory Group today.

At the ERISA Advisory Group, we have over 25 years of experience helping businesses deploy the best plan strategy while staying ERISA compliant through a Merger or Acquisition.