Weyland wishes to modify their pension plan. The current plan allows employees to either receive $500 a month or $100,000 upfront upon retirement. Both plans also offer a annual ticket to the company retreat cruise. Seeking to incentives people to accept $500 a month, Weyland wishes to tie the ticket to employees receiving $500 a month only to apply retroactively to $100,000 lump sum plan.   Does this violate ERISA?  Why or why not?

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter16: Mastering Financial Management
Section: Chapter Questions
Problem 3DQ
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Weyland wishes to modify their pension plan. The current plan allows employees to either receive $500 a month or $100,000 upfront upon retirement. Both plans also offer a annual ticket to the company retreat cruise. Seeking to incentives people to accept $500 a month, Weyland wishes to tie the ticket to employees receiving $500 a month only to apply retroactively to $100,000 lump sum plan.

 

Does this violate ERISA?  Why or why not?

 

 

 

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