Jump to content

Can a for-profit company establish a DROP plan?


Recommended Posts

Guest skim3011
Posted

I've always seen DROP plans associated with governmental entities. Is it possible for a company to establish such a plan?

Posted

It would be very difficult, if not impossible, for a private corporation to adopt a DROP plan. Such an employer would have to work around the ERISA restrictions on back-loading of benefits. It would also have to make sure that the plan, as a whole, did not discriminate in favor of highly compensated employees. I have not seen one that has found a way around these constraints.

Employee benefits legal resource site

The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use