Employee Benefits (Profit Sharing Plan) Florida, Can you opt out of a company plan?
Tamarac, FL
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Posted about 1 month ago in Employee Benefits
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My employer wants to set up a Profit Sharing Plan (retirement) and I have been told that all employees (on payroll) HAVE to participate. Is this law or can someone opt out by signing a wavier releasing them from this obligation. I have been told my other option is to cease working for the company. Is this true?
Answers (1)Steve Fromm
This attorney is licensed in Pennsylvania.
Posted about 1 month ago.
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Generally, a profit sharing plan usually does not require a participating employee to make contributions to the plan; all contributions from the corporation. If this is the case, then it is not costing you anything to be a participant, then why object. This is found money.
If it is a participating plan, then you need to request the Summary Plan Description that explains the plan in layman's terms. If this does not give you the anwer, request the actual plan document. Be aware that sometimes, plans have opting out provisions, but not always. So you may be required to participate. You need to dig deeper here and talk with an attorney if you are this concerned. Hope this helps. LEGAL DISCLAIMER Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. |