Legal Question in Employment Law in Illinois
Employee contributions to pension plan
Employer has announced that it will no longer contribute 100% of the annual pension liability to the pension fund for employees who are not covered by a collective barginning agreement while conntinuing to pay 100% of the cost for collective barginning employees. Can the employee decide to pay 100% of the pension cost for hourly employees while requiring salary employees (para professionals and supervisors, who in some cases earn less than their subordinates) to pay almost 50% of the annual pension liability for their positions?
All employees are covered by the same pension plan and receive pension benefits based on the same formula, which uses a fixed percentage rate times the number of years times the average salary of their highest four years of their last ten years of service.
1 Answer from Attorneys
Re: Employee contributions to pension plan
The question is a complicated one, and the answer lies in a mix between the pension plan agreement and the applicable law. It sounds as if the employer is trying to change the terms of the pension plan, which may or may not be permissible under these circumstances.
The bottom line is that it is impossible to answer your question without a thorough review of the pension plan itself, along with a copy of the collective bargaining agreement.
-- Kenneth J. Ashman; www.AshmanLawOffices.com
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