prohibits payouts to insiders within the meaning of Rule 16 of the Securities and Exchange Act for one year following the change in control, and such payments would be treated as "excess parachute payments" under IRC section 280G and be subject to the 20% excise tax under IRC section 4999.
legislation incorporates pension-related provisions, including several that aim to codify best industry practices respecting corporate-owned life insurance.
Approved earlier by the Senate Finance Committee, this COLI reform provision of the so-called NESTEG
pension bill would bolster disclosure requirements about COLI on employees while retaining COLI's role as an employee benefit and in business continuation planning.
1971, the National Employee Savings and Trust Equity Guarantee (NESTEG
) bill, would amend section 6062 of the Internal Revenue Code.
The legislation, called the National Employee Savings and Trust Equity Guarantee (NESTEG
) Act, was introduced by Sens.
Regarding legislation, Laurie Lewis, ACLI vice president and chief counsel, federal taxes, said that with the COLI amendment the Senate Finance Committee included in the NESTEG
pension bill, S.