Legal Question in Employment Law in Maryland

Re: Time frame for employer to pay Profit Sharing money to a terminated employee

Below is the language that Joe is referring to (29 USC sec. 1056). As he says, though, this law (ERISA) is complicated. You can call an attorney for more info. or try 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.

TITLE 29 - LABOR

CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM

SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS

Subtitle B - Regulatory Provisions

part 2 - participation and vesting

-HEAD-

Sec. 1056. Form and payment of benefits

-STATUTE-

(a) Commencement date for payment of benefits

Each pension plan shall provide that unless the participant

otherwise elects, the payment of benefits under the plan to the

participant shall begin not later than the 60th day after the

latest of the close of the plan year in which -

(1) occurs the date on which the participant attains the

earlier of age 65 or the normal retirement age specified under

the plan,

(2) occurs the 10th anniversary of the year in which the

participant commenced participation in the plan, or

(3) the participant terminates his service with the employer.

In the case of a plan which provides for the payment of an early

retirement benefit, such plan shall provide that a participant who

satisfied the service requirements for such early retirement

benefit, but separate from the service (with any nonforfeitable

right to an accrued benefit) before satisfying the age requirement

for such early retirement benefit, is entitled upon satisfaction of

such age requirement to receive a benefit not less than the benefit

to which he would be entitled at the normal retirement age,

actuarially reduced under regulations prescribed by the Secretary of the Treasury.

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.

Re: Time frame for employer to pay Profit Sharing money to a terminated employee

A 60 day limitation period is operative and elective under US Code 1056. This statute is complex and difficult to understand. I recently resolved two similar matters for other clients. Contact me if you need assistance. G. Joseph Holthaus III (410) 619-5918 or (410) 799-9002.