AFFIS Posted March 22, 2020 Posted March 22, 2020 Can a new collective bargaining agreement reduce benefits that have already been accrued by retired employees? For instance if a new CBA states that the monthly pension payouts will be reduced offset by the amount of a Social Security check if the participant is drawing social security, can that be done legally if the person is vested with accrued credits and currently drawing a benefit that is not subject to a Social Security offset? I was under the impression that both were considered earned income after the required years of service. Can a CBA legally make this type of change to accrued benefits or would they be required to grandfather in the agreed pay at the time the CBA and Plan Document was changed? If not what CBA/Plan Document would cover the current participant's future pay? Does it matter if the participant is collecting disability or retirement?.
Larry Starr Posted March 23, 2020 Posted March 23, 2020 On 3/22/2020 at 2:18 PM, AFFIS said: Can a new collective bargaining agreement reduce benefits that have already been accrued by retired employees? No. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
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