FIDUCIARY/ERISA ALERT: Single Employee Severance Package Does Not Constitute a Plan
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FIDUCIARY/ERISA ALERT: Single Employee Severance Package Does Not Constitute a Plan

An individual contract providing severance benefits to a single executive employee is not an ERISA employee welfare plan within the meaning of the ERISA statute.  While the U.S. Labor Department has taken inconsistent positions on this issue in the past, the court viewed the actions of Congress in failing to expressly expand the federal preemption to single-employee agreements as definitive. 

 

plan84schieffer8-15-11.pdf