Legal Question in Employment Law in Maryland

Pension Plan

I worked for a large non profit healthcare company in Maryland. About 10 years ago the decision was made for certain programs in the company to spin off into an affiliate program. I was moved to that programas the department I wa swith moved.

I lost all my benifts from my original employer and and have benefits thru teh affiliate.

However, the pension plan that I was vested in stopped accruing time so my time is frozen for the time I wa sin the 1st program.

The affiliate program reports to the origial program thru its board and a board memebr is an officer of the original company.

I contend that the affiliate is not a ''true'' seperate organization. Shortly after the corporation was formed one of the affiliate employees was murderd on the job but it was settled through the original company as I believe because of ''deep pocket'' and because the distiction between the 2 companies was poorly defined. Do I have an argument from my pension plan to have contued the past 10 years that I have been an employee of the affiliate? Does the statute of limitation apply. i am afraid to make a stink of this while I am stilled employed.


Asked on 4/30/03, 6:28 pm

1 Answer from Attorneys
Jeffrey Sheldon

Re: Pension Plan

Although you have identified the main issues - whether the companies are truly separate, whether the statute has run, and whether you would face reprisal (which would possibly be illegal) for raising the matter at work, it is a very complicated problem which is impossible to answer without delving deeply into those issues. For example, it might appear that the companies are closely linked because one allegedly paid for another's liability, but that does not make the second company a shell. Parent companies often handle expenses for satellite companies which are, nevertheless, legitimate independent concerns. You would thus need much more detail about the relationship between the entities before knowing whether your argument has merit.

The area of law involved is ERISA, and you would be best off speaking to an attorney who specializes in ERISA. However, you might be able to get some useful, free information from the Employee Benefits Security Administration (EBSA), formerly called the PWBA, a branch of the US Department of Labor which regulates pension matters. Their website is http://www.dol.gov/ebsa/welcome.html.

I'm sorry I can't be of more help. Your question is not only outside my expertise, but is also outside the scope of a Q&A site such as lawguru. Good luck.

Jeff Sheldon

Jeffrey L. Sheldon, Esquire

The Sheldon Law Firm

6932 Mayfair Road

Laurel, MD 20707

301.604.2497

fax: 301.776.3954

[email protected]

http://www.SheldonLawFirm.com

Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.

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Answered on 4/30/03, 9:01 pm


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