Employment Discrimination: Public University Officials May Be Held Liable

Under a recent decision that is binding on federal courts in Indiana, a public university official may be held individually liable for knowingly facilitating, approving, condoning or ignoring a lower level superior's alleged discrimination.  Learn more.

Insurance Companies: Old Dogs Can Learn New Tricks

Traditionally, captive insurance companies were considered vehicles of "last resort" to insure risks for which commercial carriers either were unable or unwilling to provide coverage. For example, during the last two decades, colleges and universities formed captive insurance companies to ensure that affordable professional liability or property and casualty insurance coverage would be available. Increasingly, however, captives are being considered for almost any situation in which a future payout will be required. Many colleges and universities, for example, are using a captive as a creative solution for providing competitive employee benefit packages in the face of skyrocketing costs. Institutions have turned to captive insurance companies to provide health, life, disability, long-term care insurance and retirement benefits for their faculty and staff -- both current employees as well as retirees.  Learn more.

IRS Issues Proposed Regulations on Nonqualified Deferred Compensation

On September 29, 2005, the IRS issued long-awaited proposed regulations governing nonqualified deferred compensation plans. The proposed regulations extend the period within which employers must amend their nonqualified deferred compensation plans to comply with Code Section 409A, provide detailed rules for determining whether an arrangement is subject to Section 409A, and address a variety of other issues. Although compliance with the proposed regulations is not mandatory until January 1, 2006, employers may rely on the proposed regulations until final regulations are issued. As a practical matter, most employers will want to comply with the proposed regulations, retroactive to the effective date of Section 409A.  Learn more.