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Our company has a confidential policy of paying severance on occasion to terminated employees, subject to certain unpublished written guidelines. Is this policy a plan regulated by ERISA?
Very likely. This means that the guidelines must be incorporated into an ERISA plan document, and that a written summary of the plan (or the plan itself) must be distributed to all eligible employees. In addition, if more than 100 employees are eligible, annual information reports must be filed with the federal goverment. Failure to comply with these requirements is generally easily fixed, and having a well drafted plan can provide substantial benefits.
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