Pension, 401K coexist?

[bbc777]

What is the name of your state? CA

Hi all,

My company has a pension plan but not offered to everyone in the company (yes I am one of the unlucky few). Can the company establish a 401K (no matching involved) even with a pension? Was told that they can't coexist together. If 401K is able to be established, can the employees who have pensions now contribute to it as well?

Thanks in advance , Brian

 

[pattytx]

Yes, they can. A pension plan is a defined benefit plan. A 401(K) plan is a defined contribution plan. Whether or not you will be allowed (as an employee class) to contribute to the 401(K) plan will be defined in the eligibility requirements of the plan document.