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Marsha411JD, Lawyer
Category: Employment Law
Satisfied Customers: 20180
Experience:  Licensed Attorney with 29 yrs. exp in Employment Law
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I have been employed for the city of Johnstown for 24 years.

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I have been employed for the city of Johnstown for 24 years. I am 46 years old. The Vesting in the retirement portion of the contract is as follows. 15 years service AND the age of 50.
My question, is the age portion legal?

Thank you for the information and your question.Do the employees pay into the retirement system or is this an employer funded retirement system?
Customer: replied 3 years ago.

yes, employees pay monthly into fund


Hello again,

Thank you for that information. The plan you described which as I understand it is that an employee must have worked a minimum of 15 years and attained the age of 50 in order to qualify for retirement benefits, is legal. In fact, under ERISA, which is the law that governs retirement plans, along with other fringe benefits, an employer may make "regular" retirement age, 62 or 65, but not later than 70, the age requirement. That said, an employee is always considered to be 100% vested in any money they pay into a qualified retirement plan.

Please let me know if you need any clarification. I would be glad to try to assist you further if I can.
Customer: replied 3 years ago.

I understand I can not retire until the age of 65. it states that. they are saying I am not 100% vested until 15 years service and the age of 50.

Yes, I understood that. It is entirely legal for an employer to set a minimum age and years of service for 100% vesting. This is actually a very common combination. In fact, it is more favorable than many I have experience with. I can understand your frustration with the fact that this seems to be more favorable to people who haven't worked with one employer for as many years as you have, but it is legal.
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