Kodak recently announced that it is increasing the benefits provided under its defined benefit plan.  Kodak will credit an additional 3% of pay each year under its cash balance pension plan instead of making a matching contribution of up to 3% of pay under its 401(k) plan.  In connection with this change, Kodak announced that it is reducing its pension costs.  Providing benefits under a defined benefit pension plan can be more efficient, allowing a company to provide a greater benefit for the same cost as a matching or nonelective contribution to its 401(k) plan.  Covington is advising Kodak with respect to this pension change.  For additional analysis, see Jerry Geisel’s article in Business Insurance.

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Photo of Richard C. Shea Richard C. Shea

Richard Shea is immediate past chair of Covington’s Employee Benefits and Executive Compensation practice. Richard is widely regarded as the nation’s leading authority on cash balance, pension equity, and other complex benefit plan designs. His practice spans the full breadth of activities needed to help his…

Richard Shea is immediate past chair of Covington’s Employee Benefits and Executive Compensation practice. Richard is widely regarded as the nation’s leading authority on cash balance, pension equity, and other complex benefit plan designs. His practice spans the full breadth of activities needed to help his clients resolve novel, sensitive, or intractable issues. His approach focuses on developing important new legal insights and ideas, and then combining them into effective litigation, legislative, regulatory, and benefit design strategies for his clients. The representative matters described below offer a sampling of the important and challenging assignments he has handled.

Before joining Covington in 1991, Richard served as Associate Benefits Tax Counsel at the Treasury Department, where, together with his colleagues at the Treasury Department and the Internal Revenue Service, he was responsible for developing federal tax legislation and regulations governing employee benefits and executive compensation.

Photo of Robert Newman Robert Newman

Robert Newman is a partner in the firm’s employee benefits and executive compensation practice group.  He represents clients ranging from small employers to some of the nation’s largest employers, including for-profit and tax-exempt entities.  His practice includes:

  • designing, drafting, and amending a wide

Robert Newman is a partner in the firm’s employee benefits and executive compensation practice group.  He represents clients ranging from small employers to some of the nation’s largest employers, including for-profit and tax-exempt entities.  His practice includes:

  • designing, drafting, and amending a wide range of retirement plans (including 401(k) plans, ESOPs, and traditional and hybrid defined benefit plans) and welfare plans (including health, severance, and cafeteria plans);
  • creating executive compensation arrangements including nonqualified deferred compensation plans, stock option plans, and other incentive plans;
  • representing clients before the IRS and the Department of Labor;
  • assisting clients with legislative initiatives;
  • providing benefits expertise in corporate transactions and ERISA litigation;
  • counseling clients with respect to pension fund investments in private equity funds and hedge funds; and
  • negotiating and writing employment agreements.
Photo of Brady McDaniel Brady McDaniel

Brady McDaniel is special counsel in the firm’s Employee Benefits and Executive Compensation practice group. His practice covers tax-qualified retirement plans, health and welfare plans, equity compensation, and executive compensation. He also advises on employee benefits and compensation issues in corporate transactions.…

Brady McDaniel is special counsel in the firm’s Employee Benefits and Executive Compensation practice group. His practice covers tax-qualified retirement plans, health and welfare plans, equity compensation, and executive compensation. He also advises on employee benefits and compensation issues in corporate transactions.