CUEd In: Volume II, Issue 4 – December 2012
Welcome to the next issue of CUEd In, our guide to the law and business of employee benefits for credit union executives.
In this issue, we highlight the importance of understanding the legal framework that governs agreements between executives and credit unions providing for the payment of severance benefits. To demonstrate the concept at issue, we use a recent case involving an executive suing under state law for benefits allegedly promised to her in connection with a severance agreement. The case illustrates how such agreements can fall underneath the vast umbrella of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which generally pre-empts state law. This case is relevant to credit union executives signing severance agreements, or other similar employee benefits agreements, because not being aware of whether ERISA governs the agreement up front can lead to uncertainty and increased expenses in trying to make that determination after the fact in the event of a dispute.
If you wish to subscribe to CUEd In, please email email@example.com. To review issues of CUEd In, or for further information on our employee benefits and employment practices, visit us at bklawers.com/cuedin.
In addition, CUEd In is now a LinkedIn Group. You may visit the CUEd In LinkedIn page and join the group here: http://www.linkedin.com/pub/jonathan-cerrito/37/330/60. We are also on Facebook. You may visit and “Like” us at www.facebook.com/bklawyers. Through our LinkedIn Group, and Facebook, we will be disseminating information and updates for credit union executives.