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John, Employment Lawyer
Category: Employment Law
Satisfied Customers: 5732
Experience:  Exclusively practice labor and employment law.
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If you are terminted in the state of arkansas does the human

Customer Question

If you are terminted in the state of arkansas does the human resources dept have to notify you and can they keep your pension if you have worked there for 25 years
Submitted: 2 years ago.
Category: Employment Law
Expert:  John replied 2 years ago.

Hi, thanks for submitting your question today.My name is John. I have over 13 years of legal and consulting experience in this area. I’m happy to assist you with your question today.

They cannot keep your pension under federal law. Either you have a traditional pension of formula amount per month (also known as a defined benefits pension ) or you have a 401k style pension where you and your employer contribute to an account that is all yours after some point (also known as a defined contribution plan). A defined benefit pension must totally vest to you at between 5 and 7 years of service, and a defined contribution plan totally vests to you at 3 to 6 years (and you are always totally vested in your contributions to the account. After these years of service you cannot lose your benefits absent some small exceptions. Your termination of employment does not divest you of your right to a pension. Thus human resources does not have the authority to and should not be notifying employees that the employer is keeping your pension. If that is a case you should immediately seek to sue the employer.

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