Avoid hidden retirement plan costs related to layoffs

June 2009
Employee Benefit News;Jun2009, Vol. 23 Issue 7, p52
The article offers guidelines for employers to avoid the hidden retirement plan costs related to employee layoffs. It is noted that employers frequently overlook the hidden costs of partial termination of a retirement plan, and when this occurs, they are required to 100% vest the employees who are terminated involuntarily. Several factors to evaluate in reviewing whether or not a partial termination occurred are suggested, including the reasons for termination and the normal turnover rate for an employer.


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