Kutak Rock attorneys Marc Lieberman and Mark Lasee have co-authored, along with Randy Pereira of Colliers International, a white paper published in Pensions & Investments titled “Strategies for Decreasing a Pension Plan’s Unfunded Liability and Help Preserve Cash Through Real Estate.”

The white paper provides an outline for corporate and governmental organizations, pension plan sponsors and plan trustees considering whether to investigate a transaction involving a contribution of real estate to its pension plan. Executed in a manner consistent with legal and ERISA requirements, large in-kind contribution credits and freedom from future cash payments can be achieved.

For corporations with owned and heavily depreciated real estate, in-kind transfers of these properties accompanied by a leaseback arrangement will produce a significant step-up in contribution value and net favorable tax outcomes. Likewise; the contribution of owned real estate by State and Municipal governments to their pension plans allows massive under-funding gaps to be closed without the taking of new debt or increased burdens on taxpayers, providing a significant alternative to maintaining a viable plan for the future.

The white paper is available here.

Marc R. Lieberman is chairman of the investment management group. A board-certified specialist in real estate law, he directs a team of lawyers across the country dedicated to negotiating alternative investments for pension systems, sovereign wealth funds and other institutional investors.

Mark E. Lasee is a board-certified real estate specialist and is a senior member of the Kutak Rock investment management group. He has more than 25 years of legal experience in business and real estate matters.