Jump to content

Recommended Posts

Posted

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?.

Posted
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

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use