Kuglitsch translates complex benefit rules for clients

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Kelly Kuglitsch loves breaking the complex down into simple ideas.

An attorney on the employment law team in the Milwaukee office of O’Neil, Cannon, Hollman, DeJong & Laing, she gets to do that on a daily basis as she helps employers understand and comply with the many laws governing employer-provided employee benefits, retirement and compensation plans.

“I take pride and pleasure in being able to use my knowledge of the overlapping laws that govern this practice area to explain an issue to a client in plain English, not jargon,” Kuglitsch said. “It’s a form of translating, which appeals to the linguist in me.”

While in college, Kuglitsch worked and studied in two different German cities that led to a life-long fascination with foreign language and explaining the unfamiliar in a way that is relatable and understandable.

“I actually enjoyed learning the rules of German grammar, so somehow it’s not surprising I ended up in this somewhat lesser-known area of law” focused on employment benefits, Kuglitsch said.

Kuglitsch did not start out planning to be an attorney, but rather a career related to art history. She received a master’s degree in art history form George Washington University in Washington, D.C. While in the nation’s capital, she interned and later worked full-time at the National Gallery of Art. While there, she learned the museum had an in-house legal department.

“Realizing that law could be practiced transactionally, instead of through litigation, was appealing,” Kuglitsch said. “I recognized that my love of research and writing could transfer to law, and I suspected that helping people solve legal issues might be more intellectually satisfying than explaining why a brushstroke in a painting looked a certain way. I was right. I truly enjoy when my advice makes a client’s day better and an issue on their desk less worrisome.”

Wisconsin Law Journal: What makes your work important to you?
Kelly Kuglitsch: My work really boils down to helping employers to properly operate their workplace retirement, health and other benefit and compensation plans so that they can, in turn, attract, reward and retain their employees in a way that fits with a company’s overall objectives. I appreciate that my practice area is very win-win. Both employers and employees benefit when these plans comply with the law and operate as intended.

WLJ: Who is your hero in the legal field?
Kuglitsch: I am partial to “everyman” heroes, and was touched to learn of Roanoke, Va., attorney G. Marshall Mundy, who retired earlier this year after 54 years of practice. He obtained several impressive wins for his clients over his long career. What people shared most often in comments honoring his retirement, however, is that he was consistently courteous to everyone. Although he served as a stalwart defender of his clients’ interests, he was also repeatedly described as supremely earnest, professional and kind. In the words of Mary Wortley Montagu, a hero outside of the legal field, “civility costs nothing and buys everything.” Applying that wisdom and being remembered for it is, in my view, a mark of true success.

WLJ: What do you do outside of work to deal with stress from the office?
Kuglitsch: I have been living in Wisconsin for almost 15 years, but there are still many corners of the state that I have yet to discover. I love finding new outings and weekend day trips to try with my husband, our two school-age children and the occasional German host-student. We will soon begin our third 10-week stint as a host family to a college-age student staying here for an internship experience. At home, my Zen place is sitting at the kitchen table while drinking a cup of coffee and watching the birds at our backyard feeder.

WLJ: What’s one thing many people get wrong about what you do?
Kuglitsch: People sometimes believe that employee benefits are simple and straightforward, and that the consequences for violating the rules aren’t very severe. In fact, however, benefits issues are deceptively complex. Even unintentional violations can sometimes trigger draconian penalties. What looks, on the surface, like a ‘simple question’ is often only answered by considering the multiple and overlapping applicable rules.

WLJ: What’s your favorite memory from law school?
Kuglitsch: My favorite memory from law school is that I never intended to be an employee benefits attorney at all! I planned to be a trusts and estates attorney, which led me to take one employee benefits law class. I thought that the class would help me to better assist my future estate planning clients, such as when retirement plan assets were a part of an estate. Professor James W. Colliton taught the small class at DePaul University College of Law. He lamented that more students didn’t sign up for the class and told us that because so few people were interested in this important area, those of us who were might someday be offered a job simply by virtue of having taken the class. I distinctly remember aloofly thinking that his words most certainly did not apply to me. But two years later, his exact prediction came true. I got my first job as an (employee benefits) attorney because I had taken that class. Luckily, I discovered that the practice area is a great fit for me.

WLJ: Is there a certain case that stands out to you?
Kuglitsch: For me, the best cases turn out to be those in which I manage to untangle a seemingly impossible knot. My all-time favorite result involved a 401(k) plan that had been used as a type of banking account for a small business. The well-meaning entrepreneurs simply weren’t previously aware of the numerous IRS and DOL rules that prohibited the many transactions that had already occurred before they called me. I was able to persuade the IRS to accept my novel legal theory, the outcome of which was to retain the tax-deferred status of the clients’ retirement savings. And while some penalty taxes were owed, my efforts allowed the clients to avoid including over $500,000 in their personal taxable income. It’s a good feeling to be able to use my knowledge and experience to make a significant impact for my clients.