401(k) Plan Law

[PHILLIPS1]

What is the name of your state? PA

WAS THERE A LAW PASSED THAT IF YOUR EMPLOYER OFFERS A 401(K) PLAN TO THEIR SALARIED EMPLOYEES THEY MUST OFFER TO ALL EMPLOYEES

 

[cbg]

Well, no, not exactly.

The law permits employees who work under 1000 hours a year to be excluded. Employees who are under the age of 21 not only can but I believe must be excluded.

Beyond that, a 401k plan has to pass a discrimination test which more or less requires that all other employees must be allowed to participate. That being said, it is possible for a plan to be written in such a way that it is only applicable in certain situations - for example, as part of a senior executive benefit package.

If this does not answer your question, please post back with details.

 

[PHILLIPS1]

Yes, here is what happened where I work we had a 401(k) plan that they matched us to 3% we ended up voting in a union so the company froze our 401 and we can get anything out or put anything in which i don't understand because their company people still are putting money in theirs so we are not in a blackout time can they stop me from contributing to mine I was told I could not

 

[cbg]

If they froze your 401k SOLELY because you voted in a union that is illegal.

If it was frozen because of a potential changeover to a union plan that is not.

 

[PHILLIPS1]

There is no change over because they make a set contrabution to the union pension plan they just will not let any hourly employee to contribute to their 401 plans since the union came in.

 

[Beth3]

Once you vote in a union, everything is on the table for negotiation. You don't start with what you have and just add from there. In theory, you could end up making minimum wage with no benefits whatsoever once the negotiatons are completed.

Your employer will now undoubtedly have two sets of different benefits - one for the union employees; another for those not in the bargaining group, which is perfectly legal. You don't get the benefits negotiated by the union for the membership PLUS the benefits the non-union employees receive.

If you don't care for the way your benefit package has ended up, your options are to vote out your bargaining committee at the next election and see if the next committee members can come up with something more to your liking that the employer will agree with, or you can start a decertification campaign and vote the union out.

 

[PHILLIPS1]

I Understand That Everything Is On The Table But How Can They Stop Me From Withdrawing Or Contributing To My 401 Since It Has Been Set Up Before The Union They May Not Match My Money But Can They Stop Me From Puting It In. That Is What I Want To Know If You Can Answer That For Me.

 

[cbg]

Yes.

While the benefit plans are in negotiation, they can stop you from putting money into it.

Federal law forbids you from withdrawing money from a 401k plan except in VERY limited circumstances, union or no union.

 

[PHILLIPS1]

Ok now that a new contract has be done and accepted and in place can they keep me from contributing to it now since it is mine. The company is saying that we can't is this against the law.

 

[cbg]

Just because the contract has been signed doesn't mean the agreements as to how the benefit packages are going to operate have been established.

But if you are so convinced that the company is violating the law, then call the US DOL.

 

[PHILLIPS1]

Ok thank you very much for your help