Legal Question in Business Law in New York

Cash account pension

I am a member of a trade union in NY, and have a pension plan with them. My employer is an S&P 500 co. that has a cash account pension plan as the company plan. Since March '03 the co. has been making annual contributions to the cash acct. plan {now at $44k). The statement for my 401K also shows the cash acct. The employer is not required to fund the cash acct plan and states balances do not imply participation--but the statement does state I am 100% vetsed in the 44k. 30 other employees in variuos unions are in the same situation. A recently disabled worker requested the cash acct. balance be sent to him as part of his termination but the request was denied and his balance was dropped to $0. Does he and the rest of us have a right to these funds under these circumstances ? The company was aware of these ''pay credits'' at the last contract negotiations but they continued to get credited annually. The company never had to make the pay credits but after 4yrs. of statements showing full vestment do we have a case for these funds?


Asked on 10/09/06, 1:15 pm

3 Answers from Attorneys
Carlos Gonzalez Gonzalez Legal Associates PLLC

Re: Cash account pension

My office regularly handles matters like these as well as the potential lawsuits that follow... there are various factors to consider including what the contract and paper work actually say with regards to employment and termination... however, it may be that you and your partners do have a right to cash out...

please feel free to contact my office regarding this matter, i look forward to being able to further assist you. 2127098303

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Answered on 10/10/06, 4:40 pm
Kristen Browde Browde Law, P.C.

Re: Cash account pension

In addition to representing individual clients, I'm one of the Trustees of a multi-employer union pension plan.

To give you a good answer to your question, I'd need more information on the pension plan. So, if you'd like to discuss this, please give me a call.

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Answered on 10/09/06, 4:58 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Cash account pension

I cannot tell without reading the Plan documents or at least the Summary Plan Description. There may be deferred vesting provisions and limitations on collecting the proceedes, depending upon how employment is terminated. If you get me the documents I can review them and provide a response.

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Answered on 10/10/06, 11:36 am


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