Robert Nobile and Lauren Breitman Tanen Published in HR Advisor
"Why It's Advantageous To Ensure Your Severance Plan Is Covered By ERISA"

Robert Nobile and Lauren Breitman Tanen's article "Why It's Advantageous To Ensure Your Severance Plan Is Covered By ERISA," was published in the May/June 2009 issue of HR Advisor. Their article discusses the advantages of ensuring that employee severance packages are a welfare benefit program covered by the Employee Retirement Income Security Act (ERISA) to take advantage of its protections. In their article, Bob and Lauren address a variety of key benefits to having a severance plan that falls under ERISA's ambit, such as: avoiding costly penalties, preempting all state laws that relate to the payment of employee benefits, dictating plan terms, and modifying or even terminating the plan at any time (with appropriate language specified in the Summary Plan Description).

Bob and Lauren conclude that there are significant advantages to developing a severance benefit plan as a welfare plan under ERISA; and, while there are some obligations attendant to the development and maintenance of such a plan, the benefits far outweigh the disadvantages. They state that one of the main benefits with a plan under ERISA is "avoiding jury trials and the potential imposition of punitive damages, which might otherwise be available to claimants under state laws." Further, the attorneys advise that "these plans have to be drafted carefully with the help of an employment or employee benefits lawyer; but these legal costs will be nominal in comparison to the benefits of having an ERISA qualifying plan."