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Fall 2009
EMPLOYEE BENEFITS
NEWS
KUTAK ROCK EMPLOYEE BENEFITS
GROUP CONTACTS 10 Ways to Cut Benefit Costs Without Cutting Benefits
John E. Schembari In the current economic climate, many companies are looking for ways to cut
John.Schembari@KutakRock.com costs. For some companies, cutting costs means cutting benefits. Fortunately, there
are ways to reduce benefit costs without reducing the benefits themselves.
Peter C. Langdon
Peter.Langdon@KutakRock.com 1. Negotiate More Aggressively With Vendors. Success rates will increase
if employers are prepared with data on differences among plans and vendors.
Janis J. Winterhof
Janis.Winterhof@KutakRock.com Employers are taking a firmer stance in negotiations, including threatening to
eliminate plans if providers refuse to reduce costs. Employers may be especially
Juliana Reno successful at reducing administrative, renewal and employee service costs through
Juliana.Reno@KutakRock.com such negotiations.
Michelle Ueding 2. Put Plans Out To Bid. It is a buyer’s market, and companies can drastically
Michelle.Ueding@KutakRock.com reduce overall benefits costs by forcing providers to compete for business. Plans
that are put out to bid are generally 16% to 18% less expensive than those that
Kathryn M. Magli
Kathryn.Magli@KutakRock.com are renewed, and may also enjoy improved benefits. Companies should consider
using an outside consultant or advisor when putting a plan out to bid. Although
William C. McCartney insurance premiums generally do not vary by broker, another advisor may provide
William.McCartney@KutakRock.com
new ideas and greater market knowledge.
Margaret A. Olsen 3. Improve Employee Health and Wellness. Wellness programs are not new,
Margaret.Olsen@KutakRock.com but they are growing in popularity. In a recent study, over one-third (35%) of
employers said that they plan to increase their wellness programs in an effort to
Autumn Long
Autumn.Long@KutakRock.com reduce benefit costs. Almost two-thirds (65%) of companies are making a significant
investment in the health and productivity of their employees through wellness
Kutak Rock LLP—Omaha programs. Approximately 80% of U.S. employers use wellness programs that target
The Omaha Building
1650 Farnam Street specific health conditions, particularly diabetes, cardiovascular disease, asthma and
Omaha, NE 68102 depression. Educating employees on the benefits of quitting smoking and losing
(402) 346-6000
weight are also key to reducing health care costs.
Other Kutak Rock Offices
4. Perform a Dependent Eligibility Audit. Dependent eligibility audits
Atlanta determine whether the individuals enrolled as “dependents” in the company’s
Chicago benefit plans are actual eligible dependents under the terms of those plans. These
Denver
Des Moines audits are an increasingly popular way to reap significant immediate and long-term
Fayetteville savings. Almost half of the respondents in a recent study indicated that they are
Irvine
Kansas City auditing or planning to audit dependent eligibility.
Little Rock Continued on Page 2
Los Angeles
Oklahoma City
Philadelphia
Richmond Also In This Issue
Scottsdale
Washington, D.C.
Wichita
Investment Committees and Best Practices........................................................3
www.KutakRock.com
Determination Letter Deadlines Change ....................... ....................................4
HIPAA Now Applies Directly to “Business Associates” .................................... 5
Increasing Regulation of Executive Compensation Inescapeable ..................6
Noteworthy Items .......................................................................................................7
In the Supreme Court ................................................................................................8
10 Ways to Cut Benefit Costs Without Cutting Benefits, cont’d.
5. Increase Efficiency of Wellness consider visiting a clinic or consulting save money by switching to a plan
Programs. Wellness programs can with their doctor before visiting a with a higher deductible and a lower
reduce overall benefits costs, but only more expensive emergency room in premium. The company takes some
if programs are run efficiently. There nonemergency situations. of the savings and returns it to the
are several methods for improving 7. Provide Alternatives for employees in an HRA. The employees
efficiency in wellness programs. First, Employees. Three-fourths of are pleased they have an account they
maximize employee participation. companies provide multiple can draw on for the deductible, and
Second, establish a wellness health plans to employees, usually the company still has a net reduction
committee to gauge employee through the same carrier. High/low in costs.
interest and needs. Third, take programs can stabilize insurance 10. Use an Outside Pharmacy
advantage of wellness offerings that costs and provide employees with Vendor. Some insurers drive em-
are already part of the health plan, such much-appreciated alternatives. ployees to choose drugs in their
as health risk assessments, program formularies so that the insurers can
discounts and screenings. Finally, 8. Extend a Plan’s Waiting Period.
Although most employee turnover receive rebates from pharmaceutical
improve employee communication manufacturers. Yet the insurers
and education. Service providers occurs during the first six months of
employment, companies generally may not share those rebates with
often supply educational materials at employers. Employers can separate
no cost to the employer and may offer allow employees to enroll in benefits
after only one, two or three months. their prescription drug benefit from
Web-based information and tracking their major medical plan. By using a
programs. Extending the waiting period
decreases the risk of a short-term third-party vendor, such as a pharmacy
6. Adjust Copayments. Adjusting employee electing COBRA coverage benefit manager, companies may be
copayments to reflect the cost of and, as a result, may lower premiums. able to obtain the pharmacy rebates
care encourages employees to for themselves.
make financially sound health care 9. Consider a Health Reim-
bursement Arrangement. Under a With a little creativity, any employer
decisions. Some companies adjust can shave costs from its benefits
copayments to make it more attractive Health Reimbursement Arrangement
(“HRA”), an employer funds an programs without reducing the
for employees to visit “in-network” benefits that help attract and retain
providers that bill at more competitive account that can be directed toward
employees’ out-of-pocket costs— top employees.
rates. Other companies have raised
deductibles, copays and coinsurance. By John E. Schembari
copayments on emergency room
visits to encourage employees to For example, a company decides to
Employee Benefits Group
Employee Benefits Group Welcomes New Attorney
Michelle Ueding practice on qualified plans, deferred on administration of Health Savings
joined Kutak Rock compensation plans and ERISA issues Account and Individual Retirement
LLP in April of 2009. relating to these types of plans. Her Account programs, reviewed transac-
Ms. Ueding is an experience includes advising clients tion documents and closely held stock
Omaha native who on plan design, fiduciary duties, valuations for trustees of Employee
attended Creigh- disclosure requirements, administra- Stock Ownership Plans, advised
ton University and tive procedures and plan corrections. clients concerning ESOP design and
graduated cum Prior to entering private practice, Ms. education, assisted clients with the
laude from Creigh- Ueding was a manager at a regionally design and implementation of execu-
Ms. Ueding
ton Law School in based retirement plan service provid- tive benefit plans, and prepared plan
1995. Ms. Ueding concentrates her er. In this capacity, she also consulted service agreements and disclosures.
2 www.KutakRock.com
Deferred Compensation
Investment Committees and Best Practices
Over the past 18 months, The following practices will help To develop an appropriate investment
investments have been volatile, to put investment committee members strategy or provide appropriate
it mildly. This volatility has heightened fulfill their fiduciary duties and limit investment options, the committee
awareness of the fiduciary obligations their potential liability: must know the participants’ needs
borne by those who control employee The committee should exercise and understand their demographics.
benefit plan investments. In most procedural prudence. Regular, Using a third-party investment
cases, investment committees decide agenda-driven meetings should be consultant to develop and implement
either the investments themselves or held at least quarterly. Meetings the strategy is highly recommended.
the investment options available to should be well documented by the The utmost care must be exercised in
the participants. These investment committee secretary. The committee employing a consultant.
committees are fiduciaries. A breach should formulate clear, written The committee should be
of fiduciary duty can result in dire procedures and adopt a charter for educated about expenses.
consequences, including fines and the conduct of its business. Members must develop a thorough
personal liability. understanding of the fees related to
Every committee member should
Fiduciaries have the duty to act be engaged. Members have a duty to plan administration and determine
solely in the interest of participants attend meetings and review relevant whether other amounts charged
and beneficiaries. In discharging documents prior to each meeting. to a plan are appropriate. Plan
this duty, fiduciaries are held to a All members should be educated on investment expenses should be
standard of one who is familiar with their fiduciary duties, the committee’s regularly reviewed and benchmarked
benefit plan investing. Under this procedures and the plan’s service to comparable investments.
standard, fiduciaries are judged on contracts. Participant-directed plans can
the prudence of their actions rather shift responsibility for specific
than the outcome. Fiduciaries do The committee should adopt a
focused, disciplined investment investment decisions. To limit
not have a legal duty to achieve the fiduciary exposure, many 401(k)
highest rate of return on their plan’s strategy. An investment policy
statement should govern the plans allow plan participants to direct
investments, but they must exercise their own investments. Significantly,
appropriate care when making committee’s selection, monitoring and
replacement of specific investments. however, participant-directed invest-
investment decisions. ments do not shift fiduciary liability
unless the plan complies with the
specific requirements of ERISA
Section 404(c). Note that even if the
ab ilit y plan complies with ERISA Section
l Li
ntia 404(c), the investment committee
te retains fiduciary responsibility for
Po choosing the investment options.
Inv
tme
es
The committee must be bonded
nt Va
lue and should consider fiduciary
Prudence of Fiduciary Actions liability insurance. A fidelity bond
must be in place for individuals
who handle plan assets. A fidelity
bond protects the plan against loss
resulting from fraudulent or dishonest
acts of those covered by the bond. In
addition, a fiduciary liability insurance
policy may be obtained. These
liability policies are not required but
are highly recommended.
By Peter C. Langdon
3
Governmental Plans
Determination Letter Deadlines Change
Private employers generally amend correction programs offered by the
their retirement plans by adopting a IRS, including the ability to self-correct
resolution at a board meeting. For operational errors without reporting
governmental employers, however, the errors to the IRS.
the amendment process can be much As we have reported in previous
more complicated. For example, a newsletters, plans generally may
governmental employer may need apply for a determination letter only
to comply with open meeting laws. during the appropriate “cycle.” The
In many cases, the governmental cycle system was adopted by the
employer will need to amend the IRS several years ago. There are five
plan by adopting new statutes or cycles—A through E. Single employer
ordinances through the legislative nongovernmental plans fall into a
process. In recognition of the specific cycle based on the last digit
difficulties faced by governmental of the employer’s tax identification
plans, the IRS has extended certain number. In contrast, the IRS originally
deadlines relating to determination announced that governmental plans
letters. wanting determination letters had to
A determination letter is a apply during Cycle C, which ran from
document, issued by the IRS to a February 1, 2008 through January 31,
specific retirement plan, stating that 2009.
the form of the plan complies with In November 2008 the IRS In November 2008 the IRS announced
current law. Plans are not required announced that governmental plans that governmental plans could also seek
to apply for or obtain determination could also seek determination letters determination letters during Cycle E,
letters, although most do, for various during Cycle E, which runs from which runs from February 1, 2010
reasons. February 1, 2010 through January through January 31, 2011.
Among other things, favorable 31, 2011. This was welcome news
determination letters can protect for all government entities that were Action Items
a plan during an audit. If the IRS unable to amend their retirement • Governmental plan sponsors who
audits a plan and determines that plans before the end of Cycle C. In were unable to file during Cycle C
the plan document does not comply such cases, we strongly recommend should submit determination letter
with the law, and if the plan does not governmental entities submit their applications during Cycle E.
have a determination letter, the IRS determination letter applications • Governmental plan sponsors who
may disqualify the plan retroactively. during Cycle E. filed during Cycle C should consider
Retroactive disqualification affects In August 2009 the IRS issued whether it may be beneficial to
the plan’s favorable tax treatment, Revenue Procedure 2009-36, which withdraw their determination letter
meaning that contributions to the offers two key points of additional applications and resubmit during
plan will be treated as taxable— flexibility for governmental plans. Cycle E.
rather than nontaxable—income. First, if a governmental plan applied for
In contrast, if the plan does have a • Governmental plan sponsors who
a determination letter during Cycle C, receive conditional determination
determination letter and has been the application can be withdrawn and
operated in compliance with the letters (letters that are contingent
resubmitted during Cycle E. Second, upon the sponsor making certain
letter, the plan is better protected where the IRS issues a favorable
against disqualification through the amendments) should immediately
determination letter but the letter is determine the time period during
date of the letter. contingent upon the plan sponsor which the amendment must be made.
Favorable determination letters adopting certain amendments, the
provide other benefits as well. government entity has more time By Kathryn M. Magli
For example, they allow plans to than a private employer to adopt the
participate in certain voluntary conforming, retroactive amendments.
4 www.KutakRock.com
Health Plans
HIPAA Now Applies Directly to “Business Associates”
On February 17, 2009, President Breach. Effective September 23, disclosing PHI. There are exceptions
Obama signed the stimulus bill, 2009: If there is a breach of “unse- to this rule, which include, but are
which included a section known as cured” PHI held by the Business not limited to: disclosures where
the Health Information Technology Associate, the Business Associate the individual whose PHI is being
for Economic and Clinical Health must notify the Covered Entity of the sold provides a valid authorization;
Act (“HITECH”). HITECH amended breach. (PHI is “unsecured” unless disclosures for public health activities;
the Health Insurance Portability and it is encrypted or destroyed so as disclosures for research purposes;
Accountability Act of 1996 (“HIPAA”) to render it unusable, unreadable disclosures for the treatment of
by strengthening federal privacy and or indecipherable to unauthorized the individual; and disclosures in
security rules governing employer- individuals.) This notification must conjunction with mergers and
sponsored health plans. occur “without unreasonable delay” acquisitions of Covered Entities.
Under HIPAA, health plans and and in no event more than 60 days Enforcement. HITECH requires the
other “Covered Entities” are required after the breach is discovered. Department of Health and Human
to protect individually identifiable Policies and Procedures. Effective Services to conduct audits of Covered
health information, such as February 17, 2010: Business Associates Entities and Business Associates.
enrollment and claims data. Covered will be directly subject to HIPAA’s In addition, the Department must
Entities are permitted to disclose this privacy and security provisions. investigate complaints of HIPAA
protected health information (“PHI”) Business Associates must adopt violations.
to their vendors and contractors, written policies and procedures that Business Associates should
who HIPAA refers to as “Business govern the use and disclosure of PHI. immediately begin drafting policies
Associates.” Covered Entities and In particular, Business Associates must and procedures for identifying,
Business Associates were required establish administrative, technical investigating and reporting breaches
to enter into a written agreement, and physical safeguards to prevent of unsecured PHI. In addition,
in which the Business Associate the improper use or disclosure of Business Associates should begin
promised to protect the PHI. PHI. A Business Associate’s failure to preparing more far-reaching policies
Privacy advocates became comply with those provisions may and procedures that satisfy the privacy
frustrated with this arrangement. In result in civil monetary penalties or, in and security rules. Business Associate
particular, they found it intolerable an extreme case, criminal sanctions. agreements should be amended to
that HIPAA could be enforced against Selling PHI. Effective February 17, reflect these new obligations.
Covered Entities, but not against 2010: Business Associates may not sell By Juliana Reno
Business Associates. HITECH solved PHI except in limited circumstances. and William C. McCartney
this frustration and affected Business Business Associates generally may not
Associates in other ways as well. receive remuneration in exchange for
Employee Benefits Group
Special Thanks to Our Summer Associates
We would like to thank our summer associates for their hard work this summer. Their efforts allowed us to provide
the level of excellent service that our clients have come to expect. In particular we want to acknowledge Amanda
Bahena Arteaga (University of Iowa), Daniel Bruce (University of Nebraska) and David DeWald (University of Nebraska)
for assisting with this edition of Employee Benefits News. Best of luck to each of you in the upcoming year.
5
Executive Compensation
Increasing Regulation of Executive Compensation Inescapeable
As a consequence of the financial
e control
in contro packages to ensure
crisis and the media attention on
tion they facilitate long-term
that t
executive pay, public outragerage growth
grow consistent with the
over “excessive” executive ve companies’ overall strategic
co
compensation has grown objectives.
o
over the last year. Say on Pay. Even
Although the Obama before the economic
Administration has crisis, shareholders
spearheaded efforts were proposing more
to limit compensation input on executive
paid to executives at compensation through
financial and automo- advisory nonbinding
tive institutions receiving votes. The House recently
v
federal government funding, ng, passed
pas the Corporate
public and congressional angernger and Financial Institution
over executive compensation nsation Compensation Fairness Act of
Compe
persists. This anger is not limited to
mited 2009, which would require “say
wh
bailout recipients but has extended on pay” votes. Mandatory say on
vo
to publicly traded companies and
panies pay is also proposed in four other
potentially beyond. bills pending in Congress. As this
pendin
Legislation regulating executive legislation comes to fruition, all
compensation for publicly traded
icly companies should evaluate the
companies has been proposed in
roposed compensation information
executive co
Congress in various forms, and a wave they provprovide to shareholders,
of change in corporate governance especially as it relates to elements
a
is imminent. New best practices
st of compensation currently under
compen
are already evolving. Any company
y scrutiny.
scrutiny
that pays executive compensation Executive Compensation Takeaways.
should examine its compensation threaten the value of the company. An executive compensation revolution
policies to determine whether it The Shareholder Bill of Rights Act of is imminent. All publicly traded
desires to realign itself with recent 2009 (pending in Congress) would companies will feel the repercussions,
compensation trends and legislation. require publicly traded companies and the changes could establish
Below we highlight some of the key to establish an independent Board best practices for private companies.
changes required or proposed. of Directors committee to direct risk As new practices emerge, boards
Compensation That Encourages management practices. should embrace new compensation
Unnecessary and Excessive Golden Parachutes—Severance policies that foster the alignment of
Risks. The Administration’s broad Packages and Change in Control executive and shareholder interests,
corporate compensation principles Payments. Companies receiving with an emphasis on policies that
may guide companies seeking to governmental funding are generally encourage long-term value creation.
address shareholder concerns over prohibited from making any payment Shareholders eventually will have
excessive executive compensation. for an executive’s departure from more input on the companies that
In sum, these principles seek to the company for any reason, except they own, and boards likely will have
align shareholder interests with for services performed or benefits to act quickly to implement more
executive interests to facilitate long- ac-crued and for a change in progressive compensation policies.
term growth while discouraging control. In light of the challenges By Janis J. Winterhof
compensation structures that to traditional golden parachute
would encourage executives to take arrangements, companies should
unnecessary and excessive risks that examine their severance and change
6 www.KutakRock.com
Employee Benefits Updates
Upcoming Deadlines Mental Health Parity. The Mental that their practices match their plan
Health Parity and Addiction Equity documentation.
Funding Relief. The temporary
Act of 2008 prohibits group health New Initiatives. President Obama
funding relief provided to defined
plans from imposing more restrictive used a recent radio address to
benefit plans under the Worker,
financial requirements and treatment announce new initiatives that were
Retiree, and Employer Recovery Act
limitations on mental health or designed to improve Americans’
of 2008 (“WRERA”) is effective for plan
substance use disorder benefits than retirement savings opportunities. The
years beginning on or after October 1,
those associated with medical and new initiatives were published as IRS
2008 and before October 1, 2009. In
surgical benefits. These provisions are guidance. The guidance:
general, the Pension Protection Act
effective for plan years beginning on
(the “PPA”) imposes limitations on
or after October 3, 2009. • Updates model notices that plan
benefits provided under a pension administrators should use when
plan unless the plan’s funded status Michelle’s Law. Michelle’s Law a participant receives an eligible
meets certain thresholds. For requires group health plans to rollover distribution.
example, a plan determined to be less continue coverage of dependent
than 60% funded must freeze benefits college students who would • Makes it easier for an employer
otherwise lose coverage due to a to add an Automatic Contribution
and discontinue certain forms of
medically necessary leave of absence Arrangement to a qualified
distributions (e.g., accelerated
for one year following the first day retirement plan or SIMPLE IRA.
distributions that pay out faster
of the medically necessary leave of Under an Automatic Contribution
than a single life annuity). Following
absence or until the date on which Arrangement, a certain percentage
the sharp decline in pension asset
such coverage would otherwise of each employee’s income is
values in 2008, many benefit plans
terminate under the terms of the plan. automatically withheld from pay
have faced the prospect of triggering
These provisions are effective for plan and contributed to the employer’s
benefit restrictions. WRERA allows
years beginning on or after October 9, retirement plan, though the employee
plan sponsors to use the prior plan
2009. must be allowed to opt out of the
year’s funding level to avoid freezing
arrangement.
benefit accruals. Suspension of Minimum Required
Extended Deadline for Distributions. WRERA suspends • Clarifies certain tax issues for
required minimum distributions employers who allow employees
Multiemployer Plans. The
IRS extended the deadline for (“RMDs”) from defined contribution to contribute unused sick leave or
multiemployer plans to elect relief plans and IRAs for 2009. Distributions vacation time to the employer’s
under WRERA. The PPA requires a in 2009 that otherwise would be RMDs retirement plan.
plan’s actuary to annually certify may be eligible rollover distributions By Margaret A. Olsen
the plan’s funding status. Sponsors but are not subject to the 20%
of plans that are in endangered, mandatory tax withholding or special
seriously endangered, or critical tax notice requirements. RMDs for
status must notify interested parties 2008 are still required, which
include those to be made
K S
of the plan’s funding status and adopt
Y D
either a funding improvement plan by April 1, 2009. Although
or rehabilitation plan. WRERA allows WRERA permits plan V F
O
affected plans to treat the plan’s amendments reflecting I
B
X
funding status for the prior plan year the required minimum
ERISA T
L
R
as its status for the applicable plan distribution waiver to
year (the first plan year beginning be adopted until the last N
during the period of October 1, 2008 day of the first plan year Z G
U
beginning on or after M C P J
H E
through September 30, 2009). Plan
sponsors must elect such relief by the January 1, 2011 (January
Q W
later of June 30, 2009 or the date that 1, 2012, in the case of
is 30 days after the due date of the governmental plans), plan
annual certification of endangered or sponsors may wish to amend
critical status for the election year. their plans sooner to ensure
7
In the Supreme Court
AT&T Corp. v. Hulteen, 129 S. May 2009, the U.S. Supreme Court their divorce settlement. During their
Ct. 1962 (2009). Pursuant to the held that employers need not marriage, the husband designated
Pregnancy Discrimination Act (the adjust current pension benefits to his spouse as the sole beneficiary
“PDA”), it is discriminatory to treat account for a denial of work credit of an ERISA savings and investment
pregnancy-related conditions for maternity leave that occurred plan (the “SIP”). When they divorced,
less favorably than other medical before the passage of the PDA. The the wife agreed to the divestment of
conditions. After the PDA was court found that an employer does her interest in the proceeds of the
enacted, AT&T adopted its Anticipated not necessarily violate the PDA when SIP. The husband retired without
Disability Plan (the “Plan”), which it pays pension benefits calculated in changing his original beneficiary
provided the same service credit for part under a rule, applied only pre- designation. When he died, the plan
pregnancy leave as leave taken for PDA, that gives less retirement credit administrator paid the SIP benefits
other temporary disabilities. AT&T did for pregnancy than for medical leave to the former spouse. The Court held
not make any retroactive adjustments generally. that the administrator was correct to
to the service credit calculations of Kennedy v. Plan Administrator adhere to the beneficiary designation
women who had been subject to for DuPont, 129 S. Ct. 865 (2009). that was filed in accordance with the
pre-PDA personnel policies, which In January 2009 the U.S. Supreme terms of the SIP. This case affirms the
provided limited service credit for Court ruled that a DuPont plan primacy of ERISA plan documents.
pregnancy-related leave. Employees administrator was correct to pay a A plan administrator must honor
sued to recover the additional deceased worker’s death benefits to the terms of the plan, even where a
pension benefits they would have his former spouse, even though she common law waiver is valid.
received if the new Plan was applied gave up her right to the benefits in
retroactively. In a 7-2 decision in
Employee Benefits Group
Kutak Rock LLP’s Employee Benefits Group exists to serve clients with respect to legal matters concerning employee benefits and
executive compensation, whether regarding corporate, litigation, tax or government relations. The Group’s collective legal expertise
provides clients with thorough representation in virtually every aspect of employee benefits matters. Our employee benefits and
executive compensation clients range from small, closely held organizations to international, publicly traded corporations to city and
state governments. For more information, visit us online at www.KutakRock.com.
John E. Schembari Peter C. Langdon Janis J. Winterhof Juliana Reno
John.Schembari@ Peter.Langdon@ Janis.Winterhof@ Juliana.Reno@
KutakRock.com KutakRock.com KutakRock.com KutakRock.com
Michelle Ueding Kathryn M. Magli William C. McCartney Margaret A. Olsen Autumn Long
Michelle.Ueding@ Kathryn.Magli@ William.McCartney@ Margaret.Olsen@ Autumn.Long@
KutakRock.com KutakRock.com KutakRock.com KutakRock.com KutakRock.com
Employee Benefits News is a publication of Kutak Rock LLP and is intended to notify our clients and friends of current events
and to provide general information about employee benefits issues. It is not intended, nor should it be used, as legal advice,
and it does not create an attorney-client relationship. This may be considered advertising in some states. The determination
of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely
upon advertisements or self-proclaimed expertise.
To ensure compliance with requirements imposed by the IRS, we inform you that any federal tax advice contained in this
communication should not be used or referred to in promoting, marketing or recommending of any entity, investment plan
or arrangement, and such advice is not intended to be written or used, and cannot be used, by a taxpayer for the purpose of
avoiding penalties under the Internal Revenue Code.
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