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Early Retirement Supplement Found to Be a 'Protected Benefit' Due to Plan Drafting
Haynes Boone
[Guidance Overview] Apr. 18, 2012
"An employer's defined benefit pension plan defined 'accrued benefit' to include early retirement supplemental benefits. However, the plan was amended to eliminate the early retirement supplemental benefit. A participant erroneously received payment of the early retirement supplemental benefit after the amendment and was asked by the employer to repay it to the plan. The employee claimed that elimination of the supplement violated ERISA's 'anti-cutback' rule."
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