[ad_1]
Pension lawyers ensure pension plans comply with relevant laws, including employment, tax, and securities laws. Pension plans provide regular income to employees after retirement, and can be funded by employers or employee contributions. Pension attorneys also advise on investment and tax laws, and must ensure compliance with age discrimination laws.
The role of an attorney, as well as the definition and role of a pension plan, differs somewhat from jurisdiction to jurisdiction. In general, however, pension lawyers’ responsibilities are very similar across the various countries that recognize pension plans. Pension attorneys’ primary responsibility is to ensure that the pension plan complies with all laws of the jurisdiction in which it is administered. To ensure compliance with all relevant laws, pensions lawyers must be knowledgeable in many different areas of the law, including employment law, tax law and securities law, among others.
A pension plan, as a rule, is a public or private arrangement that provides employees with regular income after retirement. Both government and private employers have historically offered employees a pension plan as one of the many benefits included in working for the company or agency. Some pension plans are funded entirely by the employer, while others offer employees the option to contribute to the plan. Generally, an employee-contributed plan is considered a “retirement plan”; however, the responsibilities associated with pension attorneys are virtually the same whether the plan is funded by the employer or also by employee contributions.
Money used to fund a pension is usually invested by the employer in order to have the necessary funds available to employees when they are ready to start collecting their pensions. As a result, pension attorneys must advise employers on laws associated with money control, as well as investing designated money for the benefit of others. Employers have a fiduciary responsibility to handle funds properly and for the benefit of employees. A breach of fiduciary responsibility can incur civil penalties and, in some cases, criminal charges.
Pension plans also have tax consequences for both the employer and the employee. Another important job of pension attorneys is to inform their clients of the tax laws that apply to contributions made to the retirement plan. Most employers also provide information to employees about the tax implications of withdrawing pension funds early, so a pension attorney will need to make sure the employer understands these laws as well.
Employment laws can also be important when determining the rules of a pension plan. Some jurisdictions have age discrimination laws that must be taken into account when determining at what age an employee can voluntarily begin receiving their pension or at what age an employee is required to begin accepting pension distributions. Pension attorneys must be certain that their client understands these laws so as not to become involved in age discrimination litigation.
[ad_2]