Does a CBA supersede ERISA

[Rai401k]

We have a participant under a union plan that is on long term disability and receiving Social Security benefits. Under the terms of the document the definition of disability is determined under the SS Act therefore he is considered Disabled. The document provides that upon disability the participant shall become 100% vested and be entitled to a distribution of the participants benefits. The client does not want the participant to be able to take a distribution because under the terms of the union agreement the participant is not terminated he is considered inactive and can return to work at anytime and they must take him back based on the terms of the union agreement. The client feels that if the participant receives a distribution of his account balance it would be an in-service distribution.

Under the terms of the document an in-service distribution can only be taken if the participant has attained age 59 1/2.

Does the plan document supersede here since the participant is considered disabled can we let him take a distribution, or does the client have a good argument and can they deny this participant his benefit?

[austin3515]

IU'm confused - if the paerticipant meets the plans definition of total and permanent disability and the plan allows for distribution at this point, then it's not question of employment status any longer. He is eligible for a distriubtion under the disability provisions.

And if there is a benefit provided under the plan, then nothing written anywhere will take that benefit anyway. SO for example, if the CBA said "no distributions will be paid upon disaiblity" that the provision would be moot because eliminating that benefit would be a prohibitted cut-back. So I guess you could genralize and say ERISA always wins...

[Guest Matthew Gouaux]

If the plan provides for a distribution of benefits upon disability (as determined by SSA) and the participant has been determined disabled by SSA, then the participant is entitled to the distribution. The distributable event is his disability, not a termination of employment.

[Kevin C]

Does the document say the participant is eligible for a distribution if he terminates employment due to becoming Disabled? Or, does it say he is eligible for a distribution after becoming Disabled?

Disability is listed in 1.401(k)-1(d)(a)(i) as a distributable event, so if the document allows it, I suppose you could have an in-service distribution due to Disability.

[QDROphile]

Reasonable plans terms for disability and termination of employment prevail with respect to plan benefits. There are many examples of union employees being treated as employed for other purposes, especially with respect reemployment rights, but the artificial status should not affect plan rights or benefits. Be careful about status when actual reemployment is anticipated. SSA disability tends to be pretty serious.