ERISA rules for employee terminating in 1975. Eligible or not?

[Guest Carl Miller]

An employee now age 65 went to work for a large corporation in Sept. 1962 and quit to take another job in December of 1975. The company had a defined benefit plan during this entire period. Under ERISA rules would this employee be eligible for any benefits?

[david rigby]

It depends. The plan provisions in effect at the time of severance of employment (for whatever reason) are likely what will govern. If the person was vested at that date, then (assuming it is the same plan) that vested benefit should still exist.

Most plans contain language, often contained in a preamble, something like this:

"..for any participant who terminated employment prior to the effective date of this plan/restatement, the benefit amount and all rights and features thereof will be determined by the terms of the plan as in effect at such termination of employment, and the provisions of this plan/restatement will not apply, unless expressly stated otherwise herein...."