Legal Question in Employment Law in Illinois
Pension
Discrimination?
In 1985 the company that i worked for had closed, and i had 17 1/2 years in pension plan to secure his 20, i bought 2 1/2 years and i was told by the pension board in Rosemont, IL that if i get another 10 years and retire with 30 years i would get the top rate which is class 18. In 1994, they changed the wording of the pension to read, anybody that made payments before 1994 will go in a class 16. And that's the top they would get, class 16 figures to be $2,000 a month and class 18 is $3,000 a month. Is this discrimination? Did they create a minority by changing the wording on this and singling those people out that paid payments before 1994? Because everyone after that , that made self-payments had class 18.
1 Answer from Attorneys
Re: Pension
Not all forms of discrimination are actionable under federal or state law. For example, an employer may discriminate between someone who the employer thinks has a more pleasant personality over one with a more gruff personality, which would be a valid basis on behalf of the employer to discriminate between the two employees (firing one while retaining the other, let's say).
Thus, while making two classes of pension recipients, there is a basis of descrimination; however, it is not the type protected by the federal and state anti-discrimination laws.
On the other hand, depending upon the language used in the pre- and post-amendment pension plans, you may have a claim for breach of contract. You may also have claims arising out of ERISA (a federal statute).
Without seeing documentation regarding your various plans and communications regarding them from your employer (including any employee handbook), it is not possible to assess your matter reasonably.
-- Kenneth J. Ashman; [email protected]
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