Can an employer legally change from Direct Benefit to Direct Contribution plan?

Can an employer legally change from Direct Benefit to Direct Contribution
plan? Majority stake was just sold to another company that is now changing
our Direct Benefit plan to Direct Contribution. Is that legal? Do we have any
rights in regards to keeping the Direct Benefit plan in NY state? Thank you.

Asked on September 28, 2017 under Employment Labor Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, you do not have have any right to keep the direct benefit plan. Employers have the right to determine what kind of plan or benefits they will provide in this regard, and may change them at will, subject only to contractual limitations (e.g. if there is an personal employment contract for one or more employees, or a union contract, requiring the direct benefit plan).
Remember: there is no legal obligation for the employer to provide *any* such plan at all: going forward, they could have opted to not have either a direct benefit or direct contribution plan.


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