Charlene Kelly Published in Employee Benefit Plan Review

In the December 2006 issue of Employee Benefit Plan Review, Charlene is co-author of the article "Due Diligence Review of Health and Welfare Benefit Arrangements: Two Perspectives on One Process" which notes that in any corporate transaction where one company is buying another, the process of "due diligence" allows the buyer to review the business to be purchased, including the seller's employee benefit plans. One of the many types of employee benefit plans that should be considered by the buyer during its review is the seller's health and welfare benefit arrangements. The article notes the steps of due diligence from both the buyer's and seller's perspective outlining issues to consider including: amendment and termination provisions, retiree medical benefits, self-insured benefit arrangements, vested benefits, multiple employer welfare arrangements [MEWA], life insurance, death benefits, disability, flexible spending accounts and severance. The health and welfare benefit plans of a buyer and seller can be drastically different, significant and costly and should be reviewed thoughtfully.