Legal Question in Employment Law in Nevada
Life Insurance Benefits
Although benefits are at the option of a company, is it legal to terminate company paid life insurance after 10 years, without notice, and without offering any alternative plan for the employee? Employees who have become senior citizens, have health issues, and have families who depend on this nest egg, or suddenly without coverage and it is difficult and expensive to get any more insurance. A company that chooses to offer this benefit should also incur the obligation to help the employee continue or acquire new issurance! It is tantamount to stealing their retirement funds!
1 Answer from Attorneys
Re: Life Insurance Benefits
Under ERISA, the federal law governing employment benefits, the terms of the Plan control. A typical Plan provision might read:
Life Insurance Plans May Be Amended or Terminated
The company expects to continue the Life Insurance Plans indefinitely, but
reserves the right to amend or terminate these Plans at any time by the
resolution of the Board of Directors or a properly authorized designee. In
addition, the company doesn't guarantee the continuation of any life insurance
benefits during employment or at or during retirement, nor does it guarantee any
specific level of benefits or contributions.
You Plan may differ. Read it and you might find a specific answer to your general question.
If only older workers over 40 years of age are affected, there may be a case of age discrimination.
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