Prohibited Employment/Suspension of Benefits

[Guest jfreeborn]

Hello,

I was wondering if anyone had heard of a union defined contribution plan--money purchase plan actually--that has a provision prohibiting participants from receiving benefits under the plan for at least one year after they discontinue work in a particular industry?

Basically, my client was a union worker for many years, but now he works for himself and he wants to access his money purchase pension plan. The plan says he can't b/c he is performing work similar to that covered by the union. I've heard of this with defined benefit plans, but never defined contribution plans.

Anyone have any experience? Is this OK?

As always, thanks!

[Guest Kevin1]

Yes, I have a client with a money purchase plan for union employees. The union rep specifically requested a five year delay in payouts for terminating employees.

[MSN]

I've also seen this in DC plans. The sponsor does not have any obligation to make distributions available immediately following termination.

[Guest Sieve]

This is a duplciate post. The question also has been address here: http://benefitslink.com/boards/index.php?s...ic=45909&hl=