Different match rates for 401k ??

What is the name of your state? MA

Company headquarters in PA. A current 401 k plan has been in place for several years. Current match for all employees is 10 cents on the dollar. In 2005 the company plans to match 10 cents on the dollar up to 6 % of wages for employess with less than 15 years service and 20 cents on the dollar for those employees with more than 15 years service. Is this discrimination against younger employees ? Is it legal ?

Thank you for your comments.

It's completely legal if the 401(k) Plan Document allows for a variable contribution based on years of service.

By the by, this has nothing to do with age or age discrimination. It's entirely possible to have a 33 year old employee qualify for the 15+ years of service contribution (started with the company at age 18) and a 60 year old who has been with the company for only 5 years. It is perfectly legal to "discriminate" based on years of service with a company - it happens all the time. Isn't your vacation benefit based on how long you've worked there?

401k rates - age + seniority

State ? NY

Is it legal if a 401(k) Plan Document allows for a variable contribution based on years of service and age at the same time (ex. 55y and 15 years seniority 8%, 50y and 10 years 7%, otherwise 5%)

Start your own thread, this post is almost 7 years old.