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   Employment Labor Law
   Firing
»Health Insurance, Retirement and Other Employee Benefits
Employment Labor Law - Pensions Retirement Benefits - Employer Conduct

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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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