With many thanks to Chris Guldberg for this post.
Employers considering COVID-19-related layoffs and RIFs right now should add one more item to their checklist of considerations: the possibility of inadvertently triggering a “partial termination” of their tax-qualified retirement plan.
Where plan participant numbers decrease substantially, the plan may incur what’s known as a “partial termination.” This is significant because, once triggered, the IRS requires the benefits of all “affected employees” be fully vested. Failure to provide such vesting could put the plan’s tax-qualified status at risk.Continue Reading Beware — COVID-19 Layoffs May Trigger Liability for Partial Plan Terminations
As Companies develop their
On April 27, 2020, Texas Governor Greg Abbott announced details of his plan to reopen Texas businesses in phases, so long as the COVID-19 outbreak can be sufficiently contained in the process. In conjunction with the release of the “Open Texas” strategic plan, Governor Abbott also issued three executive orders on April 27, 2020, each aimed at balancing measures to reopen sectors of the state while maintaining sufficient protections. Below are key provisions of the Open Texas strategic plan and the related executive orders. Please use the following links to access the full text of the