Mandatory Contributions

[Guest hussac]

May a non-vested participant withdraw his mandatory contributions to a defined benefit pension plan prior to his termination of employment?

[david rigby]

Typically, no. But the terms of the plan will govern this. Employee contributions to a DB plan are very rare. Is this plan sponsored by a governmental unit?

[Guest hussac]

No, not a governmental plan. Just an old-fashioned contributory DB plan, which currently permits withdrawal of mandatory employee contributions by non-vested terminated employees, and the employer wants to amend the plan to permit non-vested participants to cease contributions and withdraw their mandatory contributions while still employed. The participating employees are represented by various unions, but the Plan is maintained and trusteed solely by the employer.