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Are Governmental Plans subject to 411(d)(6)


Guest wjr

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Can A Governmental Agency eliminate the in-service withdrawal feature they currently have for after-tax employee contribution accounts? They are no longer going to allow the employees to contribute on an after-tax basis and plan to freeze the after-tax accounts.

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Governmental plans are not subject to 411(d)(6). See 411(e)(2). However, you need to watch out for state law and state Constitutional provisions. In many instances, routine "impairment of contract" provisions have been held to prohibit various modifications of benefits.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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