Mitchel Whitehead, Carrie Grove and Nicholas Waddles Published in Benefits & Compensation Digest
"Merging Multiemployer Health and Welfare Funds: A Practical Guide"

Mitchel Whitehead, Carrie Grove and Nicholas Waddles's article, "Merging Multiemployer Health and Welfare Funds: A Practical Guide," was featured in the December 2008 issue of Benefits & Compensation Digest. Their article provides a practical guide to the merger of two or more multiemployer health and welfare funds. According to the authors, unlike mergers among multiemployer pension plans, mergers between multiemployer health and welfare plans are subject to almost no federal regulation, require no advance approval by federal agencies and are the subject of very little published guidance. "Despite the lack of any significant ERISA rules or regulations," Mitchel, Carrie and Nicolas warn, "the merger of multiemployer welfare funds can be a daunting, difficult and time consuming task that demands careful attention from the trustees of the affected plans."

They further note that "Not only is it essential to exercise appropriate due diligence and prudence in implementing the transaction, but it is also important to document carefully what was done and that appropriate input and advice was obtained from the plan professionals." The attorneys conclude, "The negotiation and drafting of a comprehensive merger agreement is a key step in any merger transaction."