Military Service

[Guest John Nelson]

What is the effective date for USERRA in regard to its applicablity to employee pension benefit plans? I know that the enactment date of USERRA was December 12, 1994. But, I also see in The ERISA Outline Book that "An empoyee pension benefit plan has two years to come in complaince with section 4318".

Here's the reason for my question: The employer has not been calculating the make up contributions under its money purchase pension plan on the correct rate of pay for re-employed vets. The question is how far back should the employer go to correct?

It looks to me like the employer should go back and correct for re-employments after December 12, 1996 (rather than 1994).

Any thoughts on this would be greatly appreciated. Thanks.

[Belgarath]

My "off the cuff" opinion, for what it is worth, is that it is effective for reemployment initiated more than 60 days after 12/12/94. Although the plan has the two year period to come into compliance, I don't think that relieves the employer of the obligation to make up the requisite amount.

Fortunately I haven't run into such a situation, so have been able to avoid thinking about it! I'll be interested to see what others think.