Suspension of Benefits for Non-Union employment

[AndyH]

Can a multiemployer DB plan stop payments to people who retired from Union employment (at then-age 55 NRD) that are now collecting a monthly check and working in non-union employment?

I thought not, don't see any such language in the current plan document, but others are insisting yes, the plan should contain this language or could be amended to contain this language.

[Effen]

yes, it is possible, but the plan needs to contain the proper language. Typically the problem is properly defining the suspendable employement. There are fairly strick DOL rules for this involving the type of work and location which sometimes Trustees would rather ignore.

I'm not positive, but I don't think it can be applied retroactively. I think that was the issue in the Heinz case? http://www.mwe.com/index.cfm/fuseaction/pu...0e5d340c97c.cfm

[AndyH]

That is a big help, thank you.

[Bill Ecklund]

The DB plan can only stop payments if the plan document contains a prohibition against disqualifying employment. There are different rules for work prior to normal retirement age and work after normal retirement age that plans can adopt. If the plan does not have such language, it may adopt such language, but the application would prospective only, for credited service earned from and after the adoption of the language.

If there is nothing in the plan regarding disqualifying employment, then the plan may not suspend benefits.