Guest skim3011 Posted March 11, 2002 Posted March 11, 2002 I've always seen DROP plans associated with governmental entities. Is it possible for a company to establish such a plan?
Carol V. Calhoun Posted March 13, 2002 Posted March 13, 2002 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.
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