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Home > Law Advice > Insurance / Retirement / Benefits > Paycheck > Vesting Termination
Insurance / Retirement / Benefits
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Can an employer terminate an employee just before the employee vests in his/her ERISA retirement plan in order to avoid paying extra benefits?

Employers are prohibited under ERISA from terminating an employee to avoid paying out benefits under an ERISA plan. This prohibition can even cover some sick pay and vacation plans, depending on whether the plans are funded with the company's general assets.

 

 

(Reviewed 9-08)

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