lost retirement benefit

[kerry.king]

What is the name of your state? Utah

Part of our early retirement benefit package is 3 years of health and accident insurance. I am taking advantage of early retirement and have a job that has the same if not better insurance. I would like to have the district put the insurance premium in a 401k. Are they obligated to do that or do I lose that $30000 ?

 

[Beth3]

They aren't obligated to do that under any federal laws that govern qualified retirement and group benefit plans and even if they wanted to, it may not be lawful for them to defer that money into your 401(k) Plan. It depends entirely on how the 401(k) plan is structured and how the plan document is written. Among other things, the "formula" for contributions to the Plan must be the same for everyone and I tend to doubt the Plan is written in a way that would allow for a contribution like this in lieu of taking the extended insurance coverage. Without reading the Plan Doc though, it's impossible to say. You're going to have to ask your employer these questions - only they can answer them.