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Posted

So I'm having a hard time finding anything that allows (or disallows) a plan to not allocate any interest to employee contributions if the participant terms before becoming vested? Would this be discriminatory?

Posted

Certainly, an ERISA plan could not do such a thing. May be different for a bona-fide church plan.

In any event, whatever issues would arise from such a plan provision, it would not seem to be a discrimination issue. Unfair and inappropriate, perhaps, but not likely to be a matter of violating non-discrimination rules. To the extent that accrual rules apply, it would be more likely to violate them.

Never mind whether they could write a provision like that into the plan - why would they even want to do that?

Always check with your actuary first!

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