In Labor and Employment Law
When an employer uses an ERISA plan to administer severance benefits for a large layoff are they permitted to deviate from the plan for exceptions and if so what are the acceptable exceptions?
Under an ERISA plan, the terms of the plan supersede prior ad hoc (as well as written severance policies) by preemption. The benefits an ERISA plan include all terms being set… forth in one document, thereby increasing the liklihood that its terms are applied--and administered--uniformly, which likely may benefit an employer in the event that litigation arises. Further, the plan administrator can decide eligibility and other plan questions according to a broad standard of review. Employers should follow the terms of the plan as appropriate. If you are an employer seeking additional information: www.seas-solutions.com. This is not legal advice. ( Full Answer )