Required Participation

[Guest pmcgroine]

Is it typical (or even possible) for a plan to require eligible employees to participate in a plan "as a condition of employment"? I'm looking at a proposal requiring eligible employees to enroll at a minimum 2% employee contribution by the end of the second year of employment, and 5% by the 5th anniversary of the employee's employment. I can understand a minimum contribution to participate, but I cannot see how participation in the plan, at any minimum contribution, can be a condition of employment. Or am I just making a rookie mistake in my research and not finding a standard provision?

[mbozek]

yes- it no different than any other conditon of employment, e.g., annual salary, work hours, title. The employee is free to decline employment if he/she does not want to contribute to a plan. Contributing to a plan is a contractual matter between the employer and employee.

[mbozek]

yes- it no different than any other condition of employment, e.g., annual salary, work hours, title. The employee is free to decline employment if he/she does not want to contribute to a plan. Contributing to a plan is a contractual matter between the employer and employee.