M&A Buyer's Checklist for Retirement Plan Due Diligence
A successful merger or acquisition starts with a comprehensive benefits integration strategy. USI Consulting Group’s (USICG) experienced team of ERISA attorneys, actuaries and consultants will work with you to complete a thorough due diligence to identify risks and liabilities, compliance issues and any other hidden retirement plan related issues – helping your organization mitigate risk and incremental costs.
To prepare for due diligence of a target’s retirement plan, the buyer should request:
A list of all retirement plans, qualified and nonqualified, including those related to operations outside of the U.S., along with plan documents, adoption agreements, amendments, contracts, trust agreements, administrative forms, Form 5500, schedules, audit reports, actuarial reports (if applicable), IRS determination letters, investment committee meeting minutes, policies and procedures
The names of the oversight and investment committee members
A list of outsourced services and any professional or administrative service agreements with respect to the benefit plans
The names and positions of individuals performing day-to-day tasks for the retirement plan(s), and internal controls and procedures for those tasks
The basis for recording benefit costs and liabilities
Employee handbooks, manuals, policies, programs, practices and job descriptions
Employee communication materials (SPDs, SMMs, SARs, enrollment materials, blackout notices, etc.)
A summary of any labor disputes and their outcomes
A list of any unresolved benefits-related complaints that have been filed with local, state or federal
Union activity, work stoppage, strikes, collective bargaining agreements (including side letters or letters of understanding), participation in any multiemployer pension plan (within the past six years), and, if so, proof of an assessment of withdrawal liability
Details of individual contracts and employment agreements (written and oral), management incentives, bonus plans, stock options, retention and severance agreements, deferred compensation arrangements, unfunded liabilities and change of control agreements that could trigger golden parachute rules
If there is a defined benefit plan, pension trust agreement, investment policy, actuarial reports, interest and investment assumptions and associated plan costs including administrative costs, employer contributions, benefit distributions and employee contributions (when applicable)
Copies of agreements relating to rabbi trusts or other arrangements established to secure the payment of deferred compensation
Post-retirement benefits and their associated liabilities prepared in accordance with FASB
Print this M&A Buyer's Checklist for Retirement Plan Due Diligence
How USI Consulting Group can help
USICG’s experienced M&A experts are available to guide your organization through the complete retirement plan due diligence process, helping you mitigate risk and incremental costs. Through our parent company, USI Insurance Services, we have employee benefits and property & casualty experts to help with your holistic benefits offering.
To learn how we can help your organization, please contact your USICG representative or reach out to us at information@usicg.com.
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