transcript   Transcript

Hidden Pension Potholes: Managing Defined Benefit Risk in M&A Transactions and the 2018 New Tax Rules Window of Opportunity

Recorded on: Mar. 8, 2018
Running Time: 01:03:29

Full Transcript:

If you are a Privileged Member, just log in and start reading now! If you are not a Privileged Member, please click here to learn how unlimited access to PLI programs may be right for you and your firm.

To access the streaming media of this presentation, please purchase the corresponding seminar segment.

Taken from the One-Hour Briefing Recorded March 2018 in New York

Hidden Pension Potholes: Managing Defined Benefit Risk in M&A Transactions and the 2018 New Tax Rules Window of Opportunity [01:03:29]

The volatility of the Defined Benefit (DB) plan funded status is often overlooked in M&A transactions.  Not only is it a challenge to identify the amount of underfunding to include in the purchase price but the volatility after the fact can impact the ultimate value of the deal.  A $10M underfunded pension liability could easily double to $20M within a short time after closing.  It is important for legal counsel involved in the M&A transaction to understand these risks, the new tools available to mitigate this risk and other tax opportunities that may be available in 2018.   

Russ Proctor of Pacific Life Insurance Company, Jonathan Zimmerman of Morgan, Lewis & Bockius LLP and Karen M. Mack of Altman & Cronin Benefit Consultants, LLC discuss the importance of addressing pension risk during the M&A negotiations.  

Topics covered will include: 

  • How to determine the DB plan’s funded status and quantify the risk exposure?
  • What tools are available in the market to manage this risk?
  • How do you take advantage of changes in corporate tax rates for 2018 when a DB plan is involved?
  • What legal issues should be considered when a DB plan is involved?
    • Compliance issues and audit exposure
    • ERISA fiduciary duties and issues related to risk transfer options
    • Participant communications past and future
    • Managing risk under confidential nature of M&A deals

Presentation Material

  • Hidden Pension Potholes: Managing DB Risk in M&A Transactions and 2018 New Tax Rules Window of Opportunity
    Karen M. Mack, Russ Proctor, Jonathan Zimmerman
Transcript FAQ's
  • How Can I Access Transcripts?
    You must be a Member in good standing.

  • Can I access the Video?
    Yes, you can access the video if you have the Adobe Flash plugin installed. Click on the video camera icon when you mouse over each paragraph. The media will begin playback at that point.

  • Can I get CLE credit for reading the transcript?
    No, CLE credit cannot be earned for reading a transcript. CLE credit is issued only for verified attendance while watching a web program. If seeking credit, please verify the program's eligibility for credit and expiration date in your jurisdiction on the web segment launch page before commencing the program.

  • twitter
  • LinkedIn
  • YouTube
  • RSS

All Contents Copyright © 1996-2019 Practising Law Institute. Continuing Legal Education since 1933.

© 2019 PLI PRACTISING LAW INSTITUTE. All rights reserved. The PLI logo is a service mark of PLI.