Supplemental Unemployment Fund

[LIBERTYKID]

Is anyone aware of a sample or model supplemental unemployment fund documents or summary plan descriptions that I can review?

[Effen]

I don't know of any models, but I am working with one now that the Trustees are a bit upset that they put the plan in place. They are having a problem with the "use it or loose it" aspect of the plan. Basically, in order to collect the benefit, you must be unemployed. If you are never un-employed, you are never eligible to receive the benefit. If you are actively working until your retirement, you loose your sub-pay benefit. Same goes with death. If you die while active, no benefit is paid since you were never unemployed.

Anyone know a way around this problem?

[Guest Guest99]

I don't know a way around this issue for a 501©(17) sub plan. However, after considering the issue you discuss (no benefit from contributions made to a sub plan unless unemployed), the Trustees added an in-service withdrawal to the profit sharing plan that mimicked the sub benefit.