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Blinky the 3-eyed Fish

Vesting upon plan termination

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Guest flogger

How do you think age discrimination would play into this? For instance, suppose the reason to refuse to rehire a 60 yr old participant was because the additional cost to provide a pension (DB Plan) was too expensive. Would hard evidence be necessary to make a ADEA claim? Or is circumstantial evidence sufficient (ie the company rehired all the prior ee's under age 35 and nobody else)?

Is the ADEA exclusive from the 510 doctrine?

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flogger,

See the references earlier in the thread about the Mack Truck case. Refusing to hire because of cost of benefits is not age discrimination (at least the courts have so far said this).

510 is with respect to blocking a participant from exercising their rights under the plan. If you aren't hired, you have no new rights.

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I am new here but have a question.

I think my company is fixing to lay me off. I was given a piece of the company to help start up the company about 3 1/2 years ago.

We have recently sold approximately 90% of the company, about 40% was sold in 2014 and was given only a tax distribution on the sale as well as most of the sale was taken in notes which not have been paid yet.

The sale of about 50% was sold recently, and I was given a large cash distribution from the sale of that entity. I was told the other day I was 40% vested.

I would like to know 2 things

If I left the company on my own am I fully vested or just with 40% of my share?

If they let me go am I fully vested or I leave with my 40%?

Please help

Thank you in advance

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I was told the other day I was 40% vested.

40% vested in what? If this is ownership in a portion of the company (rather than ownership thru an ESOP), then you should probably look to whatever documentation you received when you were "...given a piece of the company..."

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40% vested ownership in company. I was given a piece of the company to help start it from the ground up.

I had always heard that when a company sells most of it's assets that you automatically become 100% vested.

But since we have notes on assets sold in 2014 they tell me that technically it hasn't sold (gotten paid) on the entity so I am not vested 100%.

We sold a total of approximately 75-80 thousand acres on 2 sales. The one sale in question is from 2014 where we took notes on approximately 290 million dollars which have not been paid yet.

We only have a few hundred acres and a midstream company left, so I believe we have sold over 90% of the assets.

So if I left why would I not be vested 100%?

Is it because the notes have not been paid for?

Thank you again

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This is a message board for people who work in the pension industry. When we refer to "vesting" we are talking about the percentage of a persons retirement benefit they are entitled based on their years of service with a company.

I think you are talking about something completely different.

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