Legal Question in Employment Law in New York

Can benefits be changed in a retirement plan?

I am an active employee in a major bank in New York city for 17 years. I have been on LTD for the past 3 years now. We have a non-contributory retirement plan. While on Ltd, my years of service are being accrued until age 65. The pension consists of a formula based on the number of years of service and on the average of the 5 highest years of salary. Last year, the plan was changed. As of 01/01/06, there is no more formula being calculated, but only 1% of earned wages will be going towards our retirement benefits. Since I am on LTD and only 53 years old, this will greatly affect my pension benefits. Does the bank have the right to change our benefits on us? Is this legal?


Asked on 12/18/06, 6:07 pm

1 Answer from Attorneys
Mark S. Moroknek Kelly & Curtis, PLLC.

Re: Can benefits be changed in a retirement plan?

This is governed by ERISA, and generally, without knowing more about the plan, so long as the bank is not changing your vested rights, or treating different types of employees differently, I believe that they can change what your future benfits will be.

There are exceptions though, and if you are concerned , go see an attorney with and bring both plans.

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Answered on 12/18/06, 11:43 pm


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