retirement while on mil leave
10-02-2009, 07:37 PM
#1
Ben Salley
Thread Starter
Joined APC: Feb 2006
Position: Left
Posts: 924
retirement while on mil leave
Q7: Will my period of active duty be considered a break in service with my employer and impact my eligibility to participate in my employer's retirement plan or my vesting or benefit accrual under the plan?
No. USERRA requires that the period of military duty be counted as covered service with the employer for eligibility, vesting, and benefit accrual purposes. Returning service members are treated as if they had been continuously employed regardless of the type of retirement plan the employer has adopted. However, a person who is reemployed is entitled to accrued benefits resulting from employee contributions only to the extent that he or she actually makes the contributions to the plan.
This question has not been important for me in the past, but dealing with Continental Airlines and the residual effects of Frank Lorenzo has made it a factor. Believe it or not, my union representation has told me that CAL is not responsible for making contributions to my B-fund while activated. A major part of the military pilot's class-action lawsuit against CAL is their contributions to our retirement while activated. From the text above, it seems pretty clear that companies have to continue retirement contributions while an employee is activated.
I'd like to know if other airlines contribute to the A/B/C funds while an employee is activated?
Thanx
No. USERRA requires that the period of military duty be counted as covered service with the employer for eligibility, vesting, and benefit accrual purposes. Returning service members are treated as if they had been continuously employed regardless of the type of retirement plan the employer has adopted. However, a person who is reemployed is entitled to accrued benefits resulting from employee contributions only to the extent that he or she actually makes the contributions to the plan.
This question has not been important for me in the past, but dealing with Continental Airlines and the residual effects of Frank Lorenzo has made it a factor. Believe it or not, my union representation has told me that CAL is not responsible for making contributions to my B-fund while activated. A major part of the military pilot's class-action lawsuit against CAL is their contributions to our retirement while activated. From the text above, it seems pretty clear that companies have to continue retirement contributions while an employee is activated.
I'd like to know if other airlines contribute to the A/B/C funds while an employee is activated?
Thanx
10-02-2009, 07:56 PM
#3
Gets Weekends Off
Joined APC: Jul 2007
Position: B-737 FO
Posts: 112
While SWA doesn't have the A/B/C funds, they do offer a 401k match when we make up our contribution for the year in question upon returning to the company. They do the calculation based on what I would have worked had I been there. I'm not sure how the calculation is actually determined. I had heard that they used your previous 6 months of fulltime employment as a guide in determining how productive you were. SWA also gives a profit sharing contribution for the time you're gone. Again, this contribution is based upon what they think you would have earned.
I received a profit sharing letter a couple months ago that actually spelled it out pretty clearly.
Actual 2008 Eligible Compensation: 50k
2008 USERRA Deemed Compensation: 35k
My profit sharing contribution was based on 85k as opposed to just 50k.
Patch
I received a profit sharing letter a couple months ago that actually spelled it out pretty clearly.
Actual 2008 Eligible Compensation: 50k
2008 USERRA Deemed Compensation: 35k
My profit sharing contribution was based on 85k as opposed to just 50k.
Patch
10-02-2009, 08:23 PM
#4
Gets Weekends Off
Joined APC: Feb 2008
Posts: 2,539
Q7: Will my period of active duty be considered a break in service with my employer and impact my eligibility to participate in my employer's retirement plan or my vesting or benefit accrual under the plan?
No. USERRA requires that the period of military duty be counted as covered service with the employer for eligibility, vesting, and benefit accrual purposes. Returning service members are treated as if they had been continuously employed regardless of the type of retirement plan the employer has adopted. However, a person who is reemployed is entitled to accrued benefits resulting from employee contributions only to the extent that he or she actually makes the contributions to the plan.
This question has not been important for me in the past, but dealing with Continental Airlines and the residual effects of Frank Lorenzo has made it a factor. Believe it or not, my union representation has told me that CAL is not responsible for making contributions to my B-fund while activated. A major part of the military pilot's class-action lawsuit against CAL is their contributions to our retirement while activated. From the text above, it seems pretty clear that companies have to continue retirement contributions while an employee is activated.
No. USERRA requires that the period of military duty be counted as covered service with the employer for eligibility, vesting, and benefit accrual purposes. Returning service members are treated as if they had been continuously employed regardless of the type of retirement plan the employer has adopted. However, a person who is reemployed is entitled to accrued benefits resulting from employee contributions only to the extent that he or she actually makes the contributions to the plan.
This question has not been important for me in the past, but dealing with Continental Airlines and the residual effects of Frank Lorenzo has made it a factor. Believe it or not, my union representation has told me that CAL is not responsible for making contributions to my B-fund while activated. A major part of the military pilot's class-action lawsuit against CAL is their contributions to our retirement while activated. From the text above, it seems pretty clear that companies have to continue retirement contributions while an employee is activated.
When you return to your employer, you should receive all contributions that would have been paid to you as if you never went on Mil Leave. While you are activated you may also be able to contribute to the Federal Thrift Savings Plan.
10-02-2009, 08:44 PM
#5
Gets Weekends Off
Joined APC: Jul 2007
Position: B-737 FO
Posts: 112
Patch
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