Waiver of Participation

[Guest pension222]

The employer currently sponsors a defined benefit plan and is considering implementing a profit sharing plan as well. The intent is to allow younger employees who do not appreciate the DB plan to participate in a profit sharing plan while allowing the older, longer service employees to continue to accrue their DB benefit.

However employees will only be allowed to earn a benefit in one of the two plans (the documents would have the correct language to permit this).

The client wants to allow current DB participants choose which plan they participate in, effectively giving them the ability to waive current accruals in exchange for a profit sharing allocation.

Is it legal for a current plan participant to waive future participation in the plan?

Specifically in this case, can a current DB participant make an irrevocable election to stop accruing benefits in the DB plan and to now participate in the new profit sharing plan? And conversly, can the new profit sharing plan stipulate that those who participate in the DB plan are not eligible for allocations?

Finally, can new employees be given the choice of which plan they want to participate in upon employment?

I would really appreciate citations to support the answer.

Thanks.